USPTO Patents Application 09870801

WILLIAM L. ANTHONY (State Bar No. 106908)
ERIC L. WESENBERG (State Bar No. 139696)
HEIDI L. KEEFE, State Bar No. 178960
MARK R. WEINSTEIN (State Bar No. 193043)
ORRICK, HERRINGTON & SUTCLIFFE, LLP
1000 Marsh Road
Menlo Park, CA 94025
Telephone: (650) 614-7400
Facsimile: (650) 614-7401

STEVEN ALEXANDER (admitted Pro Hac Vice)

KRISTIN L. CLEVELAND (admitted Pro Hac Vice)

JAMES E. GERINGER (admitted Pro Hac Vice)

JOHN D. VANDENBERG

KLARQUIST SPARKMAN, LLP

One World Trade Center, Suite 1600

121 S.W. Salmon Street

Portland, OR 97204

Telephone: (503) 226-7391

Facsimile: (503) 228-9446

Attorneys for Defendant and Counterclaimant,
MICROSOFT CORPORATION

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
OAKLAND DIVISION

INTERTRUST TECHNOLOGIES
CORPORATION, a Delaware corporation,

Plaintiff,

v.

MICROSOFT CORPORATION, a
Washington corporation,

Defendant.

MICROSOFT CORPORATION, a
Washington corporation,

Counterclaimant,

v.

INTERTRUST TECHNOLOGIES
CORPORATION, a Delaware corporation,

Case No. C01-1640SBA
Consolidated with C02-0647 SBA

MICROSOFT'S PRELIMINARY
INVALIDITY CONTENTIONS
REGARDING U.S. PATENTS 6,253,193
& 6,185,683 PURSUANT TO PLR 3-3,
3-4

The Honorable Saundra B. Armstrong

Counterclaim-Defendant.

InterTrust and its agents have engaged in a long pattern of misconduct that extends to and
includes false and unsupported allegations of patent infringement. By way of example, the
following information and attached charts illustrate that InterTrust has made invalid assertions of
patent claim infringement under 35 U.S.C. §§ 102, 103 and 112 (limited to indefiniteness, non-
enablement, and written description). Additional grounds for invalidity and unenforceability lie
outside the scope of PLR 3-3 and are expressly reserved. Microsoft further reserves the
unrestricted right to assert its defenses (and seek declaratory judgments) that the claims asserted
by InterTrust are not infringed.

Microsoft has stated and preserves its objections and arguments as set forth in its motions
on file and case management statements. Microsoft further notes and incorporates by reference
its objections to InterTrust's improper attempts to modify its PLR 3-1 Statements without consent
or leave of Court. Without limitation, Microsoft objects to InterTrust's refusal to provide a
complete PLR 3-1 Statement for any of the InterTrust asserted patents, or to provide relevant
information sought in discovery, including the identity of the alleged inventors of specific claims;
conception or actual reduction to practice dates for specific claims; whether to its knowledge
there has ever been any alleged embodiment(s) of asserted claims; and what if any specification
support is alleged, including from any of the applications from which InterTrust claims priority.
For example, InterTrust has failed to provide discovery regarding reduction to practice, including
as set forth in Microsoft's motion to compel and the Court's rulings thereon. For another
example, InterTrust has alleged that specific claims are entitled to rely on one or more earlier
applications for priority, but has refused to state how. Microsoft expressly reserves the right to
rely upon InterTrust's own activities, alone and in connection with others, as prior art, should
InterTrust fully comply with relevant discovery. Microsoft further reserves the right to
supplement this statement or otherwise further respond if InterTrust modifies its PLR 3-1
allegations (including but not limited to providing proper initial PLR 3-1 Statements), whether
through motion or consent, or if InterTrust contends (or the Court rules) that any earlier or later
priority date(s) may apply.
PLR 3-3(a, b)

This Statement responds to InterTrust's initial PLR 3-1 Statement regarding U.S. Patents
6,253,193 and 6,185,683 served on or about October 29, 2001. The identities of prior art
references that anticipate claims as asserted in InterTrust's PLR 3-1 Statement or render them

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

obvious are set forth below and in the attached PLR 3-3(c) charts. Please refer to the columns in
the charts for further description of the references identified in abbreviated form below.

Asserted Claims

References That Anticipate
and/or Render Obvious

'683 - 2, 28-29

Stefik, CUPID, CNI/IMA 94, Choudhury/Maxemchuk,
Tygar/Yee, Neuman, Davies & Price, ATMs, Chaum,
Telescript, NT, Bell-Lapadula, CUPID, Blaze, "secure"
OODBs,Kerberos, Cox/Mori, Griswold, Cryptolopes,
iOpener, iPower, Lampson

'193-1.4,11,15,19

Stefik, Choudhury/Maxemchuk, Blaze, CNI/IMA 94,
Hellman, CUPID, Chaum, Neuman

See also the cited art in the manner applied by the Examiners.

Each prior art reference identified herein and in the attached charts anticipates one or
more asserted claims or renders them obvious. People having knowledge of this information prior
to relevant priority dates include the authors/creators and recipients/users of each reference.

Entities making/receiving offers or information regarding products referenced herein
include the following:

Item

Date

exemplary entities making offer
and/or information known

NT, OLE, COM

1993 and continuing thru at
least 2/12/95 and 2/24/97

Microsoft Corp.

Kerberos

before 1994 and continuing
thru at least 2/12/95 and
2/24/97

MIT; B. Clifford Neuman

Strongbox, Dyad,
Mach

before 1994 and continuing
thru at least 1995

Carnegie Mellon Univ.; Doug
Tygar; Bennet Yee, Rick Rashid

Stefik

at least by 1994 and continuing
thru at least 2/12/95 and
2/24/97

Xerox; ContentGuard

CUPID

at least by 2/94 and continuing
thru at least 2/12/95 and
2/24/97

See '683 chart

PolicyMaker

by 1996

AT&T

PersonaLink

at least prior to 2/12/95

AT&T

Telescript

at least by 1994

General Magic, AT&T, RSA

PGP

at least by 2/94 and continuing

Phil Zimmerman

1

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

thru at least 2/12/95 and
2/24/97

RSA software

at least before 2/12/95 and
2/24/97

RSA

iPower, iOpener

before 2/12/95

National Semiconductor

"secure" OODB
systems (e.g., Orion,
Itasca, Thor)

at least by 2/13/94 and
continuing thru at least 2/12/95
and 2/24/97

MCC, Itasca, MIT (see '683
chart); IBEX

Cryptolope &
InfoMarket

Before 2/12/95 and 2/24/97

IBM

From InterTrust's current document production, it appears that its employees' and
consultants' activities, including offers for sale, public uses, derivations, and "inventions" (in the
sense of Section 102(g)), and disclosures to Willis Ware, Drew Dean, and others not under any
duty of confidentiality, constituted or created material and perhaps anticipatory prior art to many
of the asserted claims, that was not cited to the Patent Office. Microsoft reserves the right to
supplement this disclosure after Microsoft has had an opportunity to investigate this possible prior
art in discovery.

Suggestions to combine & motivations to combine

Among the combinations obvious under § 103 are those set forth in each § 102 prior art
reference cited herein, including D. Kahn, The Codebreakers (Macmillan 1967); L.D. Smith,
Cryptography - the science of secret writing (Dover 1943, 1971); Bruce J. Walker and Ian F.
Blake, Computer Security and Protection Structures (Dowden Hutchinson & Ross, Inc. 1977); D.
Hsiao et al., Computer Security (Academic Press 1979); A. Konheim, Cryptography: A Primer
(Wiley 1981); D. Denning, Cryptography and Data Security (Addison- Wesley 1982); Meyer,
C.H., and Matyas, S.M., Cryptography - A New Dimension in Computer Data Security (Wiley
1982); Wood, Unix System Security (Hayden 1985); Elliott Irving Organick, The Multics System
(MIT 5th ed. 1985); CJ. Date, An Introduction to Database Systems. 4 th ed. (Addison- Wesley
1986); J. Cooper, Computers & Communications (McGraw Hill 1989); S. Muftic, Security
Mechanisms for Computer Networks (Ellis Horwood 1989); Davies & Price, Security For
Computer Networks (Wiley 1989); W. LaLonde and J. Pugh, Inside Smalltalk (Prentice Hall
1990); Computer Security (Time Life 1990); D. Russell et al., Computer Security Basics
(O'Reilly 1991); S. Garfinkel, Practical Unix Security (O'Reilly 1991); CMU Computer Science:
A 25 th Anniversary Commemorative. R. Rashid, ed. (ACM Press 1991); D. Curry, Unix System

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

Security (Addison- Wesley 1992); Custer, Inside NT (Microsoft Press 1993); B. Schneier, Applied
Cryptography (Wiley 1994) (also 2d ed. 1996); D. Dougherty, The Mosaic Handbook (O'Reilly
1994); Castano, Database Security (Addison- Wesley 1994); F. Cohen, Protection and Security on
the Information Highway (Wiley 1995); A. Tanenbaum, Operating Systems, Design and
Implementation (Prentice Hall 1987), Computer Networks . 2d ed. (Prentice Hall 1988), Modern
Operating Systems (Prentice Hall 1992), and Distributed Operating Systems (Prentice Hall 1995);
the work of Martin S. Olivier et al. cited in the attached '683 chart; the work of Morris Sloman,
Jonathan Moffet, David Chaum, B. Clifford Neuman and Butler Lampson (see
www.doc.ic.ac.uk/'-mss/MSSPubs.html; www-users.cs .york.ac.uk/~jdm/jdmpubs.htm ;
www.chaum.com/articles/list_of_articles.htm; http://www.isi.edu/people/bcn/publications.html;
and research.microsoft.com/lampson/Publications.html); any single conference, meeting or
proceedings, such as the January 1994 RSA Data Security Conference, 2 the April 1993
conference at Harvard University described in the deposition of Richard J. Linn, or Proceedings,
Technological Strategies for Protecting Intellectual Property in the Networked Multimedia
Environment. Journal of the Interactive Multimedia Association Intellectual Property Project , vol.
1 no. 1 (Jan. 1994) ("CNI/IMA 94"). Additional obvious combinations include the combinations
indicated in the asserted patents' file histories, related RFCs, work on a common project or
product, and the combinations of any given author or named inventor's cumulative prior art work.
For example, by "Stefik" this document refers to the referenced patents, acts and publications
attributed in whole or part to Mark Stefik, taken individually or together. These make obvious,
for example, that using methods in additive, iterative or other combinations could enhance overall
"security," as would variation in individual steps or methods, such as encrypting, signing, or
building files, using objects, and/or distributing in such a manner as to help do or protect things of
value against unauthorized access, threats, or adverse effects. Adding or subtracting rights, or
adding or repeating steps or functions (such as adding Kerberos to access control lists or
capabilities, or watermarking binaries before and/or after encrypting any part of them), were
simple variations of this. (See, e.g., Davies, Denning, Hellman, Neuman, Chaum, Linn, Blaze,
Lampson, Tygar/Y ee, Stefik, Choudhury/Maxemchuk, Moffett, Curry, Garfinkel/Spafford,
Muftic, Carroll, Hsiao et al.). These further make obvious that one can automate any manual step

2 See, e.g., Walker, Notes from RSA Data Security Conference,
www.eff.org/Privacv/Crvpto/Crypto misc/rsa conf.summarv (Jan. 18, 1994);
www.ddi.com/documents/s- 1 005/ddi 9454dZ9454d.htm . (Dr. Dobbs Journal).

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

in the exchange of encrypted information, or vice versa. For example, one or more steps of a
communication or transfer could be "out of band".

The motivation for seeking "security," privacy, and integrity was widely recognized in the
United States and elsewhere prior to February 13, 1994, and extends to any information or item of
perceived value, including books, music, computer systems, and computer programs, as set forth
in, e.g., Hellman, Stefik, Chaum, Choudhury, Date, Castano, Custer, Olivier, Russell, Muftic,
Denning and/or Davies. 3 Additional motivations include the desire to meet or exceed any
applicable laws or industry or government standards, such as the Orange Book, Computer Fraud
and Abuse Act of 1986, Computer Security Act of 1989 PL100-35, High Performance Computing
Act (HPCA) of 1991 (P.L. 102-194), and Title 17 U.S.C. § 101 et seq. (including, for example, §
1002). Industry standards include those for communication, such as X.509, TCP/IP, WWW, and
WAIS, and those for encryption or transmission of encrypted information, e.g., DES, Triple DES,
RSA, SSL, S/MIME, SHTTP, HTTPS, MD5, and PEM. Additional obviousness teachings to
combine with such items or information include "security" levels, permissions, certificates,
tickets, "secure" processors, "secure" storage, "smart" cards (including smart cards able to store
data and perform computations such as encryption/decryption), tamper resistance techniques for
hardware and software, physical "security," trusted time, authentication and authorization in
trusted distributed systems, enabling software or features thereof to run only on particular
machines, and treating binary information/data at varied levels of granularity. It was further
obvious to combine any of these "security" features with any of the following software (or
features thereof) and/or any of the following hardware (or features thereof) to provide any
element or perform any step shown in the charts below:

software: file and operating systems such as NT, NFS, Andrew, Netware, Mach, DT
Mach, Multics, Unix, and in the Blaze and Tanenbaum and other references cited above;
secure kernels; protocols, codes and systems such as WWW, SSL, SGML, hypertext, Oak,
Telescript, OOP and other programming technologies or frameworks (e.g. Smalltalk,
COM, OLE, Bento, Open Doc) 4 ; object-oriented databases; watermarking; obfuscation
(see, e.g., Choudhury at 15); swIPe; SNMP; auditing; on-line transaction and

3 Regarding digital music, see also, e.g., J. RatclifF, "Examining PC Audio," Dr. Dobb's Journal
(March 1993).

4 For example, it was obvious to use the prior art OOP technologies or frameworks to implement
the systems described in e.g. Fischer, Linn, Stefik, Choudhury, Telescript, and object-oriented
databases.

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

subscription-based services and billing; electronic payment; on-line banking,
entertainment and commercial and interactive commerce; encryption and authentication
(including e.g., "something you are, something you know, something you have");
hardware: physical security tools and devices; physically secure locations, physically
"secure" products such as tamper resistant computers or other devices, "secure"
processors, "secure" memory, "smart" cards, set-top boxes, portable devices, "secure"
communication facilities.
See Stefik, CNI/IMA 94, Chaum, Tygar/Y ee> Choudhury/Maxemchuk, Stefik, Denning, Davies,
Moffett, Curry, Garfinkel/Spafford, Muftic, Carroll, Hsiao et al. and the other references cited
above.

Each of these suggestions and motivations to combine apply to each of the references set
forth in the attached charts.

PLR 3-3(c)

The attached charts identify, for each item of prior art, elements within the scope of
InterTrust's October 29, 2001 PLR 3-1 allegations for the '683 and '193 patents. The structure,
act or material for any such element if so construed is set forth in the references identified in the
attached charts. 5

PLR 3-3fd)

Each asserted claim is invalid as indefinite, for lack of enablement, and for lack of the
written description required by statute. The present basis in each case is each applicable patent
specification relied upon by InterTrust for the description required by paragraphs one and two of
Section 1 12, and the prosecution histories of those applications and related applications as
provided by law. Further basis may include, by way of example, any extrinsic evidence relevant
to the construction of claim terms; InterTrust's own professed ignorance whether simple acts like
playing music from a compact disc do not infringe asserted claims; and its difficulty, delay and/or
inability to identify conception dates or actual reductions to practice of asserted claims.

5 InterTrust has not identified any claim elements allegedly subject to § 112^6 under PLR 3.
Should InterTrust do so (and reserving any objection thereto), Microsoft reserves the right to
respond to that issue.

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

"Indefiniteness" of the Asserted InterTrust Patent Claims 6

In prosecuting, marketing, and enforcing the asserted InterTrust Patents, InterTrust has
engaged in a pattern of obfuscation as to the scope of the patents, the prior art to the patents, and
the alleged "inventions" of the patents. For example, InterTrust has mechanically buried Patent
Office Examiners with a collection of more than 400 references, many of which were not related
to the claims, and has buried the Examiners with hundreds or thousands of pages of redundant,
verbose, unclear text, effectively precluding a real comparison of the alleged "invention" versus
the prior art, and accused non- infringing products of infringement. One result of InterTrust' s
approach is that the asserted patent claims are indefinite in myriad ways.

The asserted "claims" are unclear in scope and not nearly as precise as the subject matter
allows. This indefiniteness arises from many causes, including:

by use of terms that lacked any ordinary meaning in the art and are undefined in

the specification;

by use of terms that are used in the specification in a manner inconsistent with
their ordinary meaning, but are not specifically defined in the specification;

by a Section 1 12, U 6 "means (or step) plus function" element having no specific
structure in the application's written description clearly linked to that claim element
(examples denoted below by underlining) 7 ;

by such excessive disclaimers of specificity of a term that the term becomes
meaningless;

by inconsistent uses of a term within a single specification;
by inconsistent uses of a term between a specification and something allegedly
incorporated into that specification;

by inconsistencies within the language of a given claim;
This lack of definiteness is exacerbated by InterTrust trying to apply these claims to the
very different structures and techniques of (or that InterTrust mistakenly attributes to) Microsoft's
accused software. Particularly in view of these untenable infringement accusations, the following
bolded claim terms and phrases are indefinite under 35 U.S.C. § 1 12, ^ 2. Microsoft reserves the

6 For ease of reference only, the accompanying claim listings use the clause numbering and
lettering used by InterTrust in its PLR 3-1 Statements.

7 Other undefined, indefinite claim terms are so ambiguous that one or more possible
constructions are purely functional such that the term, as so construed, is a Section 1 12, H 6
limitation. Microsoft, therefore, reserves the right to identify additional claim limitations as

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right to modify this listing, e.g., if and when InterTrust clarifies its infringement and claim
construction positions.

493

1) A method comprising:

a) receiving a digital file including music;

b) storing said digital file in a first secure memory of a first device;

c) storing information associated with said digital file in a secure database stored on said first
device, said information including at least one budget control and at least one copy control, said
at least one budget control including a budget specifying the number of copies which can be
made of said digital file; and said at least one copy control controlling the copies made of said
digital file;

d) determining whether said digital file may be copied and stored on a second device based
on at least said copy control;

e) if said copy control allows at least a portion of said digital file to be copied and stored on a
second device,

f) copying at least a portion of said digital file;

g) transferring at least a portion of said digital file to a second device including a memory and
an audio and/or video output;

h) storing said digital file in said memory of said second device; and

i) including playing said music through said audio output.

Following are some examples of the many ways in which this claim and these claim terms
and phrases are indefinite on the face of the patent and/or as apparently construed by InterTrust:

a) receiving a digital file

- "receiving . . . file" is indefinite, e.g., on what

including music;

processing, if any, is required to complete this

"receiving" step, on what receives the "file," and on what

or where it is received from.

- "file" is indefinite, e.g., on whether it encompasses or

excludes a duplicate or "copy" of the "file."

- "including" is used inconsistently in the specification

and is indefinite, e.g., on whether it encompasses or

Section 1 12, T| 6, limitations.

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excludes merely holding a reference.

b) storing said digital file in a
first secure memory of a first
device;

- see above

- "storing . . . in" is used inconsistently in the
specification and is indefinite, e.g., on whether it
encompasses or excludes merely holding a reference.

- if "secure memory" is not at least limited to the
disclosed internal RAM and/or ROM (directly
addressable by a SPU processor instruction) located
within the physically protected, "tamper-resistant" 8 SPU,
the term "secure memory" would be indefinite.

- "secure" is indefinite. It is an amorphous term that
the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
of threat(s) is (are) being addressed (e.g., confidentiality?
integrity? authentication? non-repudiation? availability?)
and on the nature and the level(s) of protection from
those threats that separate(s) "secure" from "not secure."

c) storing information associated
with said digital file in a secure
database stored on said first
device,

see above

- if "associated with said digital file" is not at least
limited to use of the disclosed "component assembly,"
"secure container," "protected processing environment,"
"object registration," and other mechanisms of the
purported "VDE" "invention" for allegedly individually
ensuring the "access control" "handcuffs" between
specific "controls," specific "objects" (and their content
at an arbitrary granular level), and specific "users," the
phrase "associated with said digital file" would be
indefinite.

- if "secure database" is not at least limited to the
disclosed "secure database" (including its "secure

Indefinite claim terms, such as "tamper-resistant," used in describing the indefiniteness of
other claim terms, are used in their narrowest possible sense.

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database manager" and alleged access control "VDE"
mechanisms), the term "secure database" would be
indefinite.

said information including at
least one budget control

- see above

- "control" is used inconsistently in the specification.
If "control" is not at least limited to the disclosed
executable, modular "component assembly" component
that, inter alia, performs its "VDE" "access control" tasks
at an arbitrary granular level, the term "control" would
be indefinite.

- "budget control" is not used in the specification and
is indefinite.

and at least one copy control,

- see above

- "copy control" is not used in the specification and is
indefinite. For example, it is indefinite on whether
"copy" is used as a verb or a noun.

"copy" is indefinite, e.g., on whether it encompasses
or excludes something (or creating something) that is not
an identical duplicate of the original; and, if it does
encompass that, then how close that something must be
to the original to constitute a "copy."

said at least one budget control
including a budget specifying
the number of copies which can
be made of said digital file;

see above

- "budget" is used inconsistently in the specification
and is indefinite. For example, apparently it is used to
refer sometimes to a "method," sometimes to a
"component assembly," sometimes to a value, and
sometimes to a UDE data structure.

- "copies" is indefinite (see "copy" above)

if the phrase "specifying the number of copies which
can be made of said digital file" is not at least limited to
meaning the total global number of "copies" that ever
will have been made of that "file" at any time, by any

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"user," by any device, and for any length of persistence,
it would be indefinite.

and said at least one copy control
controlling the copies made of
said digital file;

- see above

- if "controlling" is not at least limited to use of the
disclosed "component assembly," "protected processing
environment," "object registration," "secure container,"
and other mechanisms of the purported "VDE"
"invention" for allegedly individually ensuring that
specific "controls" are enforced vis-a-vis specific objects
(and their content at an arbitrary granular level) and
specific "users," the term "controlling" would be
indefinite.

- the phrase "controlling the copies made of said
digital file" is indefinite, e.g., on whether it refers to
"controlling" the process of "copying" the "file," or
"controlling" all resulting "copies" of the "file," or both.

d) determining whether said
digital file may be copied and
stored on a second device based
on at least said copy control;

- see above

- "copied" is indefinite (see "copy" above)

- "determining whether said digital file may be copied
and stored on a second device" is indefinite, e.g., on
whether this step determines whether the "file" may be
"copied" on a second device, on whether one or more
determinations are made.

- "a second device" is indefinite, e.g., on whether it
means "any" second device or a particular second device.

- depending on the construction of other claim
limitations, such as "at least one copy control controlling
the copies made of said digital file" the phrase "based on
at least said copy control" may be inconsistent with other
limitations of this claim and thus may be indefinite.

e) if said copy control allows at
least a portion of said digital file

- see above

- "a portion of said digital file" is indefinite, e.g., on

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to be copied and stored on a
second device,

whether it encompasses or excludes matter that is merely
referenced within the "file."

- depending on the construction of other claim
limitations, such as "based on at least said copy control,"
the phrase "if said copy control allows" may be
inconsistent with other limitations of this claim and thus
may be indefinite.

- depending on the construction of other claim
limitations, such as "at least one copy control controlling
the copies made of said digital file," the phrase "if said
copy control allows at least a portion of said digital file
to be copied" may be inconsistent with other limitations
of this claim, and thus may be indefinite.

f) copying at least a portion of

said digital file;

- see above

- "copying" is indefinite, e.g., on whether it
encompasses or excludes creating something that is not
an identical duplicate of the original; and, if it does
encompass that, then how close that something must be
to the original to constitute a "copy."

- "at least a portion" is indefinite and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "allowed" "to be copied and
stored on a second device" by the "copy control."

g) transferring at least a portion
of said digital file to a second
device

- see above

- "transferring" is indefinite, e.g., on how it differs, if
at all, from "moving" or "copying."

- "at least a portion" is indefinite and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "allowed" "to be copied and
stored on a second device" by the "copy control."

- "at least a portion" is indefinite, and has an indefinite
antecedent basis, e.g., on whether it encompasses or

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excludes a "portion" not "copied" in the preceding step.
- "a second device" is indefinite, and has an indefinite
antecedent basis, e.g., on whether it is limited to the same
particular second device referred to earlier in the claim
(to the extent the claim earlier refers to a particular
second device).

including a memory

- "memory" is indefinite, e.g., on whether it
encompasses or excludes storage that is not directly
addressable by the processor.

and an audio and/or video
output;

- "audio and/or video output" is indefinite, e.g., it is
inconsistent with the later claim recitation of "said audio
output."

h) storing said digital file in said
memory of said second device;
and

- see above

i) including playing said music
through said audio output.

- "said audio output" is indefinite, e.g., it is
inconsistent with the earlier claim recitation of "audio
and/or video output."

2) A method as in claim 1, further comprising:

a) at a time substantially contemporaneous with said transferring step, recording in said first
device information indicating that said transfer has occurred.

Following are some examples of the additional ways in which this dependent claim and
these claim terms and phrases are indefinite on the face of the patent and/or as apparently
construed by InterTrust:

at a time substantially
contemporaneous with said
transferring step,

- see above

- "a time substantially contemporaneous with" is not
used in the specification, and is indefinite.

recording in said first device
information indicating that said

- "transfer" is indefinite, e.g., on how it differs, if at
all, from "move" or "copy."

PAGE 14 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

transfer has occurred.

- "information indicating that said transfer has
occurred" is indefinite, e.g., on the extent to which the
information identifies "said transfer," e.g., what was
"transferred" and/or to what it was "transferred."

3) A method as in claim 2, in which:

a) said information indicating that said transfer has occurred includes an encumbrance on
said budget.

Following are some examples of the additional ways in which this dependent claim and
these claim terms and phrases are indefinite on the face of the patent and/or as apparently

construed by InterTrust:

a) said information indicating

- see above

that said transfer has occurred

- "an encumbrance on said budget" is indefinite, e.g.,

includes an encumbrance on

for the same reasons that "budget" is indefinite, and, as

said budget.

to its function and structure, and on whether it must be

uniquely identifiable with respect to the universe of

"VDE" nodes.

4) A method as in claim 3, in which:

a) said encumbrance operates to reduce the number of copies of said digital file authorized
by said budget.

Following are some examples of the additional ways in which this dependent claim and
these claim terms and phrases are indefinite on the face of the patent and/or as apparently
construed by InterTrust:

said encumbrance operates to
reduce the number of copies of
said digital file authorized by
said budget.

- see above

- "operates to reduce the number of copies of said
digital file authorized by said budget" is indefinite, e.g.,
on whether it reduces the total global number of "copies"
that ever will have been made of that "file" at any time,

PAGE 15 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

by any "user," by any device, and for any length of

persistence, and on meaning of an "encumbrance"

"operating."

1 1) A method comprising:
2. receiving a digital file;

b) storing said digital file in a first secure memory of a first device;

c) storing information associated with said digital file in a secure database stored on said first
device, said information including a first control;

d) determining whether said digital file may be copied and stored on a second device based
on said first control, said determining step including identifying said second device and
determining whether said first control allows transfer of said copied file to said second device,
said determination based at least in part on the features present at the device to which said
copied file is to be transferred;

e) if said first control allows at least a portion of said digital file to be copied and stored on a
second device,

f) copying at least a portion of said digital file;

g) transferring at least a portion of said digital file to a second device including a memory and
an audio and/or video output;

h) storing said digital file in said memory of said second device; and
2. rendering said digital file through said output.

Following are some examples of the many ways in which this claim and these claim terms
and phrases are indefinite on the face of the patent and/or as apparently construed by InterTrust:

a) receiving a digital file;

- "receiving . . . file" is indefinite, e.g., on what
processing, if any, is required to complete this
"receiving" step, on what receives the "file," and on what
or where it is received from.

- "file" is indefinite, e.g., on whether it encompasses or
excludes a duplicate or "copy" of the "file."

b) storing said digital file in a
first secure memory of a first

see above

- "storing . . . in" is used inconsistently in the

PAGE 16 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

device;

specification and is indefinite, e.g., on whether it
encompasses or excludes merely holding a reference.

- if "secure memory" is not at least limited to the
disclosed internal RAM and/or ROM (directly
addressable by a SPU processor instruction) located
within the physically protected, "tamper-resistant" SPU,
the term "secure memory" would be indefinite.

- "secure" is indefinite. It is an amorphous term that
the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
of threat(s) is (are) being addressed (e.g., confidentiality?
integrity? authentication? non-repudiation? availability?)
and on the nature and the level(s) of protection from
those threats that separate(s) "secure" from "not secure."

c) storing information associated
with said digital file in a secure
database stored on said first
device,

- see above

- if "associated with said digital file" is not at least
limited to use of the disclosed "component assembly "
"secure container," "protected processing environment,"
"object registration," and other mechanisms of the
purported "VDE" "invention" for allegedly individually
ensuring the "access control" "handcuffs" between
specific "controls," specific "objects" (and their content
at an arbitrary granular level), and specific "users," the
phrase "associated with said digital file" would be
indefinite.

- if "secure database" is not at least limited to the
disclosed "secure database" (including its "secure
database manager" and alleged access control "VDE"
mechanisms), the term "secure database" would be
indefinite.

said information including a first
control

- see above

- "including" is used inconsistently in the specification

PAGE 17 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

and is indefinite, e.g., on whether it encompasses or
excludes merely holding a reference.
- "control" is used inconsistently in the specification.
If "control" is not at least limited to the disclosed
executable, modular "component assembly" component
that, inter alia, performs its "VDE" "access control" tasks
at an arbitrary granular level, the term "control" would
be indefinite.

d) determining whether said
digital file may be copied and
stored on a second device based
on said first control;

- see above

- "copied" is indefinite (see "copy" above)

- "determining whether said digital file may be copied
and stored on a second device" is indefinite, e.g., on
whether this step determines whether the file may be
"copied" on a second device.

- "a second device" is indefinite, e.g., on whether it
means "any" second device or a particular second device.

- "determining whether said digital file may be copied
and stored on a second device based on said first control"
is indefinite; e.g., it is inconsistent with the later claim
limitation "if said first control allows at least a portion of
said digital file to be copied and stored on a second
device"

said determining step including
identifying said second device
and determining whether said first
control allows transfer of said
copied file to said second device,

- see above

- "identifying said second device" is indefinite, e.g., on
whether the identification is of the type of device or of
the particular second device unit, and on whether it is a
unique identification.

- "transfer" is indefinite, e.g., on how it differs, if at
all, from "move" or "copy."

- "said copied file" lacks antecedent basis, and is
indefinite. For example, the preceding limitations do not
recite the "copying" of any "file" that could be an

PAGE 18 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

antecedent for " said copied file."
- if "copied file" is not at least limited to a "file" that
has been "copied" at least once, then "copied file" would
be indefinite.

said determination based at least
in part on the features present at
the device to which said copied
file is to be transferred;

- "said determination" is indefinite as to its antecedent
basis (e.g., "determining whether said digital file may be
copied and stored ..." or "determining whether said first
control allows transfer ....").

- "the features present at the device" is indefinite, e.g.,
on whether "the features" means all or any particular
type of features, on what has these "features," and on the
relationship, if any, of "features present at the device" to
features of the device.

- "to which said copied filed is to be transferred" is
indefinite. For example, it is inconsistent with the other
claim limitations reciting that "transfer" may not be
allowed.

- "transferred" is indefinite, e.g., on how it differs, if at
all, from "moved."

e) if said first control allows at
least a portion of said digital file
to be copied and stored on a
second device,

- see above

- "a portion of said digital file" is indefinite, e.g., on
whether it encompasses or excludes matter that is merely
referenced within the "file."

- "a second device" is indefinite, and has an indefinite
antecedent basis, e.g., on whether it is limited to the "said
second device" recited earlier in the claim.

- depending on the construction of other claim
limitations, such as determining whether said digital file
may be copied and stored on a second device based on
said first control," the phrase "if said first control allows
at least a portion of said digital file to be copied and
stored on a second device" may be inconsistent with

PAGE 19 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

other limitations of this claim, and thus may be
indefinite.

f) copying at least a portion of

said digital file;

see above

- "copying" is indefinite, e.g., on whether it
encompasses or excludes creating something that is not
an identical duplicate of the original; and, if it does
encompass that, then how close that something must be
to the original to constitute a copy.

- "at least a portion" is indefinite and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "allowed" "to be copied and
stored on a second device" by the "first control."

g) transferring at least a portion
of said digital file to a second
device

see above

- "transferring" is indefinite, e.g., on how it differs, if
at all, from "moving" or "copying."

- "at least a portion" is indefinite and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "allowed" "to be copied and
stored on a second device" by the "first control."

- "at least a portion" is indefinite, and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "copied" in the preceding step.

- "a second device" is indefinite, and has an indefinite
antecedent basis, e.g., on whether it is limited to the said
second device" recited earlier in the claim.

including a memory

memory is indefinite, e.g., on whether it
encompasses or excludes storage that is not directly
addressable by the processor.

and an audio and/or video
output;

- "audio and/or video output" is indefinite.

h) storing said digital file in said
memory of said second device;

- see above

- "storing said digital file" is indefinite and

PAGE 20 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

and

inconsistent with other claim limitations, e.g.,
"transferring at least a portion of said digital file to a
second device."

1) rendering said digital file
through said output.

- see above

- "rendering said digital file" is indefinite and
inconsistent with other claim limitations, e.g.,
"transferring at least a portion of said digital file to a
second device."

15) A method comprising:
2. receiving a digital file;

b) an authentication step comprising:

c) accessing at least one identifier associated with a first device; and

d) determining whether said identifier is associated with a device and/or user authorized to
store said digital file;

e) storing said digital file in a first secure memory of said first device, but only if said device
and/or user is so authorized, but not proceeding with said storing if said device and/or user
is not authorized;

f) storing information associated with said digital file in a secure database stored on said first
device, said information including at least one control;

g) determining whether said digital file may be copied and stored on a second device based
on said at least one control;

h) if said at least one control allows at least a portion of said digital file to be copied and
stored on a second device,

2. copying at least a portion of said digital file;

j) transferring at least a portion of said digital file to a second device including a memory and
an audio and/or video output;

k) storing said digital file in said memory of said second device; and
1) rendering said digital file through said output.

Following are some examples of the many ways in which this claim and these claim terms
and phrases are indefinite on the face of the patent and/or as apparently construed by InterTrust:

PAGE 21 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

a) receiving a digital file;

"receiving . . . file" is indefinite, e.g., on what
processing, if any, is required to complete this
"receiving" step, on what receives the "file," and on what
or where it is received from.

- "file" is indefinite, e.g., on whether it encompasses or
excludes a duplicate or "copy" of the "file."

b) an authentication step

comprising:

- "authentication step" is indefinite, e.g., for the
reasons set forth below.

c) accessing at least one
identifier associated with a first
device or with a user of said
first device; and

- "accessing" is indefinite, e.g., on whether it
encompasses or excludes ascertaining the information
content of what is "accessed" (e.g., decrypting any
encrypted information).

- if "identifier" is not at least limited to a value that
uniquely identifies a particular device or "user," it would
be indefinite.

- "identifier associated with" is indefinite, e.g., on
whether the "identifier" is uniquely "associated with."

- "identifier associated with a first device or with a
user of said first device" is indefinite and inconsistent
with the later claim recitation of "determining whether
said identifier is associated with a device and/or user . . .."

- "a user of said first device" is indefinite, e.g., on
whether the "user" is a current, past, or potential "user"
of the device.

d) determining whether said
identifier is associated with a
device and/or user authorized to
store said digital file;

- "determining whether said identifier is associated
with a device and/or user is indefinite and mconsistent
with the preceding claim limitation of an "identifier
associated with a first device or with a user of said first
device."

- "authorized to store said digital file" is indefinite,
e.g., on whether such "authorization" is conditional or

PAGE 22 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

unconditional.

e) storing said digital file in a
first secure memory of said first
device,

- see above

- "storing ... in" is used inconsistently in the
specification and is indefinite, e.g., on whether it
encompasses or excludes merely holding a reference.

- if "secure memory" is not at least limited to the
disclosed internal RAM and/or ROM (directly
addressable by a SPU processor instruction) located
within the physically protected, "tamper-resistant" SPU,
the term "secure memory" would be indefinite.

- "secure" is indefinite. It is an amorphous term that
the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
of threat(s) is (are) being addressed (e.g., confidentiality?
integrity? authentication? non-repudiation? availability?)
and on the nature and the level(s) of protection from
those threats that separate(s) "secure" from "not secure."

but only if said device and/or
user is so authorized, but not
proceeding with said storing if
said device and/or user is not
authorized;

- "said device and/or user" is indefinite and has an
indefinite antecedent basis (e.g., "a device and/or user
authorized to store said digital file" or "at least one
identifier associated with a first device or with a user of
said first device").

- "so authorized" is indefinite and has an indefinite
antecedent basis (e.g., "authorized" for "storing said
digital file in a first secure memory of said first device"
or "authorized to store said digital file").

- "but only if said device and/or user is so authorized"
is mconsistent witn but not proceeding with said storing
if said device and/or user is not authorized," rendering
both phrases indefinite.

f) storing information associated
with said digital file in a secure

see above

- if "associated with said digital file" is not at least

PAGE 23 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

database stored on said first
device,

limited to use of the disclosed "component assembly,"
"secure container," "protected processing environment,"
"object registration," and other mechanisms of the
purported "VDE" "invention" for allegedly individually
ensuring the "access control" "handcuffs" between
specific "controls," specific "objects" (and their content
at an arbitrary granular level), and specific "users," the
phrase "associated with said digital file" would be
indefinite.

- if "secure database" is not at least limited to the
disclosed "secure database" (including its "secure
database manager" and alleged access control "VDE"
mechanisms), the term "secure database" would be
indefinite.

said information including at
least one control

see above

- "including" is used inconsistently in the specification
and is indefinite, e.g., on whether it encompasses or
excludes merely holding a reference.

- "control" is used inconsistently in the specification.
If "control" is not at least limited to the disclosed
executable, modular "component assembly" component
that, inter alia, performs its "VDE" "access control" tasks
at an arbitrary granular level, the term "control" would
be indefinite.

g) determining whether said
digital file may be copied and
stored on a second device based
on said at least one control;

see above

- "copied" is indefinite (see "copy" above)

- "determining whether said digital file may be copied
and stored on a second device based on said at least one
control" is indefinite, e.g., on whether this step
determines whether the "file" may be "copied" on a
second device.

- "a second device" is indefinite, e.g., on whether it

PAGE 24 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

means "any" second device or a particular second device.

h) if said at least one control
allows at least a portion of said
digital file to be copied and
stored on a second device,

- see above

- "a portion of said digital file" is indefinite, e.g., on
whether it encompasses or excludes matter that is merely
referenced within the "file."

- depending on the construction of other claim
limitations, such as "determining whether said digital file
may be copied and stored on a second device based on
said at least one control," the phrase "if said at least one
control allows at least a portion of said digital file to be
copied" may be inconsistent with other limitations of this
claim, and thus may be indefinite.

i) copying at least a portion of

said digital file;

- see above

- "copying" is indefinite, e.g., on whether it
encompasses or excludes creating something that is not
an identical duplicate of the original; and, if it does
encompass that, then how close that something must be
to the original to constitute a "copy."

- "at least a portion" is indefinite and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "allowed" "to be copied and
stored on a second device" by the "at least one control."

j) transferring at least a portion
of said digital file to a second
device

see above

- "transferring" is indefinite, e.g., on how it differs, if
at all, from "moving" or "copying."

- "at least a portion" is indefinite and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "allowed" "to be copied and
stored on a second device" by the "at least one control."

- "at least a portion" is indefinite, and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "copied" in the preceding step.

PAGE 25 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

a second device is indefinite, and has an indefinite
antecedent basis, e.g., on whether it is limited to the same
particular second device referred to earlier in the claim
(to the extent the claim earlier refers to a particular
second device).

including a memory

- "memory" is indefinite, e.g., on whether it
encompasses or excludes storage that is not directly
addressable by the processor.

and an audio and/or video
output;

- "audio and/or video output" is indefinite.

n) storing said digital tile in said
memory of said second device;
and

- see above

- "storing said digital file" is indefinite and
inconsistent with other claim limitations, e.g.,
"transferring at least a portion of said digital file to a
second device."

i) rendering said digital file
through said output.

5CC aUUVC

- "rendering said digital file" is indefinite and
inconsistent with other claim limitations, e.g.,
"transferring at least a portion of said digital file to a
second device."

19) A method comprising:

a) receiving a digital file at a first device;

b) establishing communication between said first device and a clearinghouse located at a
location remote from said first device;

c) said first device obtaining authorization information including a key from said
clearinghouse :

d) said first device using said authorization information to gain access to or make at least one
use of said first digital file, including using said key to decrypt at least a portion of said first
digital file; and

e) receiving a first control from said clearinghouse at said first device;

PAGE 26 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

f) storing said first digital file in a memory of said first device;

g) using said first control to determine whether said first digital file may be copied and
stored on a second device;

h) if said first control allows at least a portion of said first digital file to be copied and stored
on a second device,

i) copying at least a portion of said first digital file;

j) transferring at least a portion of said first digital file to a second device including a memory
and an audio and/or video output;

k) storing said first digital file portion in said memory of said second device; and
1) rendering said first digital file portion through said output.

Following are some examples of the many ways in which this claim and these claim terms
and phrases are indefinite on the face of the patent and/or as apparently construed by InterTrust:

t\\ recpivino a Hiaital HIa at a firct
aj i^vtriruig a Ulgllal lilt at a Hial

device;

"receiving ... at" is indefinite, e.g., on what
processing, if any, is required to complete this
"receiving" step, and on what or where it is received
from.

- "file" is indefinite, e.g., on whether it encompasses or
excludes a duplicate or "copy" of the "file."

b) establishing communication
between said first device and a
clearinghouse located at a
location remote from said first
device;

- "establishing communication between" is indefinite,
e.g., on whether this step requires one or more
"communications," on whether two-way
"communication" must be established, and on the nature
of the "communication."

- "location remote from" is indefinite, e.g., on how
"remoteness" is determined.

- "clearinghouse" is indefinite. For example, it
vaguely suggests a function without suggesting any
particular structure for performing such function. No
particular corresponding structure is adequately
described in the specification.

c) said first device obtaining

- if "authorization information" is not at least limited

PAGE 27 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U S PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

authorization information
including a key from said
clearinghouse:

to (1) the disclosed executable, modular "component
assembly" component that, inter alia, performs its
"VDE" "access control" tasks at an arbitrary granular
level, and (2) the key and other data used thereby, the
term "authorization information" would be indefinite.
- "including" is used inconsistently in the specification
and is indefinite, e.g., on whether it encompasses or
excludes merely holding a reference.

d) said first device using said
authorization information to
gain access to or make at least
one use of said first digital file,
including using said key to
decrypt at least a portion of said
first digital file; and

- "gain access to" is indefinite, e.g., on whether it
encompasses or excludes ascertaining the information
content of what is "accessed" (e.g., decrypting any
encrypted information).

- "use" is indefinite and is used inconsistently in the
specification, e.g., on whether or not it encompasses or
excludes "distribution," "extraction," "manipulating,"
and/or "copying."

e) receiving a first control from
said clearinghouse at said first
device;

see above

- "control" is used inconsistently in the specification.
If control" is not at least limited to the disclosed
executable, modular "component assembly" component
that, inter alia, performs its "VDE" "access control" tasks
at an arbitrary granular level, the term "control" would
be indefinite.

f) storing said first digital file in
a memory of said first device;

- see above

- "storing . . . in" is used inconsistently in the
specification and is indefinite, e.g., on whether it
encompasses or excludes merely holding a reference.

niciiiury ib maeiiniie, e.g., on wne trier it
encompasses or excludes storage that is not directly
addressable by the processor.

g) using said first control to
determine whether said first

- see above

- "copied" is indefinite, e.g., on whether it

PAGE 28 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

digital file may be copied and
stored on a second device;

encompasses or excludes creating something that is not
an identical duplicate of the original; and if it does
encompass that, then how clear that something must be
to the original to constitute a "copy."

- "determine whether said first digital file may be
copied and stored on a second device" is indefinite, e.g.,
on whether this step determines whether the "file" may
be "copied" on a second device.

- "a second device" is indefinite, e.g., on whether it
means "any" second device or a particular second device.

- "using said first control to determine whether said
tirst digital file may be copied and stored on a second
device" is indefinite; e.g., it is inconsistent with the later
claim limitation "if said first control allows at least a
portion of said first digital file to be copied and stored on
a second device"

h) if said first control allows at
least a portion of said first
digital file to be copied and
stored on a second device,

see above

- "a portion of said digital file" is indefinite, e.g., on
whether it encompasses or excludes matter that is merely
referenced within the "file."

- depending on the construction of other claim
limitations, such as "using said first control to determine
whether said first digital file may be copied and stored on
a second device" the phrase "if said first control allows at
least a portion of said first digital file to be copied" may
be inconsistent with other limitations of this claim, and
thus may be indefinite.

i) copvins at least a oortion of

said first digital file;

_ CPA tlY\f\\ff*

ot/W uUUVC

- "copying" is indefinite, e.g., on whether it
encompasses or excludes creating something that is not
an identical duplicate of the original; and, if it does
encompass that, then how close that something must be

PAGE 29 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U S PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

to the original to constitute a "copy."
- "at least a portion" is indefinite and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "allowed" "to be copied and
stored on a second device" by the "first control."

j) transferring at least a portion

of said first digital file to a
second device

- see above

- "transferring" is indefinite, e.g., on how it differs, if
at all, from "moving" or "copying."

- "at least a portion" is indefinite and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a "portion" not "allowed" "to be copied and
stored on a second device" by the "first control."

- "at least a portion" is indefinite, and has an indefinite
antecedent basis, e.g., on whether it encompasses or
excludes a portion not "copied" in the preceding step.

- "a second device" is indefinite, and has an indefinite
antecedent basis, e.g., on whether it is limited to the same
particular second device referred to earlier in the claim
(to the extent the claim earlier refers to a particular
second device).

including a memory

- see above

and an audio and/or video
output;

- "audio and/or video output" is indefinite.

lc^ storing Q?iiH firct Hioitnl filo

ivy auri mg oaiu liiol Ulglual

portion in said memory of said
second device; and

see above

1) rendering said first digital file
portion through said output.

- see above

'683

2. A system including:

PAGE 30- MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

a first apparatus including,
user controls,

a communications port,

a processor,

a memory storing:

a first secure container containing a governed item, the first secure container governed item
being at least in part encrypted; the first secure container having been received from a second
apparatus;

a first secure container rule at least in part governing an aspect of access to or use of said
first secure container governed item, the first secure container rule, the first secure container
rule having been received from a third apparatus different from said second apparatus; and
hardware or software used for receiving and opening secure containers. said secure
containers each including the capacity to contain a governed item, a secure container rule
being associated with each of said secure containers :

a protected processing environment at least in part protecting information contained in said
protected processing environment from tampering by a user of said first apparatus, said
protected processing environment including hardware or software used for applying said
first secure container rule and a second secure container rule in combination to at least in
part govern at least one aspect of access to or use of a governed item contained in a secure
container : and

hardware or software used for transmission of secure containers to other apparatuses or for
the receipt of secure containers from other apparatuses .

Following are some examples of the many ways in which this claim and these claim terms
and phrases are indefinite on the face of the patent and/or as apparently construed by InterTrust:

2. A system including:

a first apparatus including,

- the claim is indefinite on which of the recited
elements are included in the "first apparatus."

user controls,

- "user controls" is indefinite.

a communications port,

a processor,

a memory storing:

- "memory" is indefinite, e.g., on whether it

PAGE 3 1 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

encompasses or excludes storage that is not directly
addressable by the processor.

- "storing" is used inconsistently in at least the
allegedly incorporated specification and is indefinite,
e.g., on whether it encompasses or excludes merely
holding a reference.

- the claim is indefinite on which of the recited
elements are "stored" in the "memory."

a first secure container
containing a governed item,

- "secure container" is indefinite, e.g., on its structure
and certain of its functions, on whether it encompasses or
excludes "virtual container." The specification does not
disclose adequate corresponding structure under Section
112,1(6.

- "container" is indefinite, e.g., on its structure and
certain of its functions, and on what distinguishes a
single "container" from two separate "containers."

- "secure" is indefinite. It is an amorphous term that
the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
of threat(s) is (are) being addressed (e.g., confidentiality?
integrity? authentication? non-repudiation? availability?)
and on the nature and the level(s) of protection from
those threats that separate(s) "secure" from "not secure."

- "storing . . . secure container" is indefinite, e.g., on
what part, if any, of the "container" may merely be
referenced from within the memory.

- "containing" is indefinite and used inconsistently in
at least the allegedly incorporated specification. For
example, it is indefinite on whether it encompasses or
excludes merely holding a reference, and, if it does
encompass merely holding a reference, what type of
reference suffices to constitute "containing."

PAGE 32 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

- if "govern" is not at least limited to preventing
unapproved user processing of a particular item on a per
item basis by use of the disclosed "component
assembly," "secure container," "protected processing
environment," "object registration," and other
mechanisms of the purported "VDE" "invention" for
allegedly individually ensuring the "access control"
"handcuffs" between specific "controls," specific
"objects" (and their content at an arbitrary granular
level), and specific users, the term "governed" (and
"governed item") would be indefinite.

- "a governed item," is indefinite, e.g., on what
distinguishes "a governed item" from two separate
governed items.

the first secure container
governed item being at least in
part encrypted;

- see above

the first secure container
having been received from a
second apparatus;

- see above

- "received" is indefinite, e.g., on what processing, if
any, is required to complete this "receipt," and on what
"received" the "received" item.

- "having been received from" recites the (possibly
unknowable) history of a component (or something
stored in a component) rather than the structure or
function of the component, apparatus or system, thereby
rendering this apparatus claim indefinite.

- "received from a second apparatus" is indefinite, e.g.,
\ju wu^ui^i uii& cii^uiiipaaaco or excludes receipt rrom
some intermediary between the second apparatus and
first apparatus.

a first secure container rule at
least in part governing an

see above

- "rule" is indefinite and is used inconsistently in the

PAGE 33- MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

aspect of access to or use of

specification. For example, the relationship between a

said first secure container

"rule" and a "control" is indefinite.

governed item,

"secure container rule" is indefinite and not used in

the specification.

- "at least in part" is indefinite, and, under some

possible meanings, inconsistent with "governing."

- if "governing" is not at least limited to preventing

unapproved user processing of a particular item on a per

item basis by use of the disclosed "component

assembly," "secure container," "protected processing

environment," "object registration," and other

mechanisms of the purported "VDE" "invention" for

allegedly individually ensuring the "access control"

"handcuffs" between specific "controls," specific

"objects" (and their content at an arbitrary granular

level), and specific users, the term "governing" would be

indefinite.

- "at least in part governing" is indefinite, e.g., on how

to identify when this act of "governing" has begun, is

ongoing, or has ended.

- "access" is indefinite, e.g., on whether it

encompasses or excludes determining the information

content of what is "accessed" (e.g., decrypting any

encrypted information).

- "use" is indefinite and is used inconsistently in the

allegedly incorporated specification, e.g., on whether or

not it encompasses or excludes "distribution,"

extraction, manipulating, and/or copying.

"an aspect of access to or use of is indefinite.

the first secure container rule,

see above

- the claim is indefinite on the significance of this

repetition of the phrase "the first secure container rule."

PAGE 34 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

the first secure container rule
having been received from a
third apparatus different from
said second apparatus; and

- see above

- "received from a third apparatus" is indefinite, e.g.,
on whether this encompasses or excludes receipt from
some intermediary between the third apparatus and first
apparatus.

hardware or software used for
receiving and opening secure
containers.

see above

- "receiving" is indefinite, e.g., on what processing, if
any, is required to complete this "receiving" step, on
what receives the "secure containers," and on what or
where they are received from.

- if "opening secure containers" is not at least limited
to successful completion of the "OPEN method"
expressly disclosed in the allegedly incorporated
specification, the phrase "opening secure containers"
would be indefinite.

"hardware or software used for receiving and opening
secure containers," is indefinite, e.g., on the structure of
this "hardware or software," and on whether the same
"hardware or software" performs both "receiving" and
"opening." The specification does not disclose adequate
corresponding structure.

said secure containers each
including the capacity to
contain a governed item,

- see above

- if "said secure containers" is not at least limited to all
"secure containers" which the "hardware or software
used for receiving and opening secure containers" is able
to "receive and open" (regardless of whether it has done
so), the phrase "said secure containers" would be
indefinite.

- "contain" is indefinite and used inconsistently in at
least the allegedly incorporated specification. For
example, it is indefinite on whether it encompasses or
excludes merely holding a reference, and, if it does

PAGE 35 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

encompass merely holding a reference, what type of
reference suffices to constitute "contain."
- "including the capacity to contain a governed item" is
indefinite, e.g., on the manner in which a capacity" is
included in a "secure container," and on whether the
"capacity to contain" must apply to some particular
"governed item" or to every "governed item" without
limitation.

a secure container rule being
associated with each of said
secure containers:

see above

- if "being associated with . . . secure containers" is not
at least limited to use of the disclosed "component
assembly," "secure container," "protected processing
environment," "object registration," and other
mechanisms of the purported "VDE" "invention" for
allegedly individually ensuring the "access control"
"handcuffs" between specific "controls," specific
"objects" (and their content at an arbitrary granular
level), and specific users, the phrase "being associated
with ... secure containers" would be indefinite.

- if said secure containers is not at least limited to all
"secure containers" which the "hardware or software
used for receiving and opening secure containers" is able
to "receive and open" (regardless of whether it has done
so), the phrase "said secure containers" is indefinite.

a protected processing
environment at least in part
protecting information

pftntfiiripH in caiH nrnfopi'aH
luiiiaiucu in adiu pruicllcU

processing environment from
tampering by a user of said
first apparatus,

- "protected" is indefinite. It is an amorphous term
that the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
oi tnreans; is (are; oeing addressed (e.g., coniidentiality ?
integrity? authentication? non-repudiation? availability?),
and on the nature and the level(s) of protection from
those threats that separate(s) "protected" from "not
protected."

PAGE 36 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

- if "protected processing environment" is not at least
limited to excluding the processor and "memory" recited
earlier in the claim, and is not at least limited to
executing software and/or hardware (if any) expressly
disclosed in the specification and identified as a
"protected processing environment," the term "protected
processing environment" would be indefinite.

- if "protecting" is not at least limited to preventing
unauthorized "user" processing of a particular item on a
per item basis by use of the disclosed "component
assembly," "secure container," "protected processing
environment," "object registration," and other
mechanisms of the purported "VDE" "invention" for
allegedly individually ensuring the "access control"
"handcuffs" between specific "controls," specific
"objects" (and their content at an arbitrary granular
level), and specific "users," the term "protecting" would
be indefinite.

- "at least in part" is indefinite, and, under some
possible meanings, inconsistent with "protecting."

- "information contained in said protected processing
environment" is indefinite, e.g., on what aspects of a
"protected processing environment" can "contain"
information, and on whether "contain" encompasses or
excludes merely holding a reference, and, if it does
encompass merely holding a reference, what type of
reference suffices to constitute "contain."

- "protecting from . . . tampering" is indefinite, e.g., on
the specific threat(s) being addressed, and on the level(s)
and nature of protection from those threats.

- "a user of said first apparatus" is indefinite, e.g., on
whether "a user" means "any user" or a particular "user."

PAGE 37 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

said protected processing
environment including
hardware or software used for
applying said first secure
container rule and a second
secure container rule in
combination to at least in part

govern at least one aspect of
access to or use of a governed

item contained in a secure
container : and

- see above

- "said first secure container rule and a second secure
container rule" is indefinite, e.g., on what distinguishes a
single "rule" from two separate "rules."

- "hardware or software used for applying ... in a
secure container" is indefinite, e.g., on the structure of
this "hardware or software." The specification does not
disclose adequate corresponding structure.

- "applying ... in combination" is indefinite, e.g., on the
manner in which the "rules" are merged and applied.

- "contained in" is indefinite and used inconsistently in
at least the allegedly incorporated specification. For
example, it is indefinite on whether it encompasses or
excludes merely holding a reference in, and, if it does
encompass merely holding a reference in, what type of
reference suffices to constitute "contained in."

- "at least in part" is indefinite, and, under some
possible meanings, inconsistent with "govern."

- if "govern" is not at least limited to preventing
unauthorized "user" processing of a particular item on a
per item basis by use of the disclosed "component
assembly," "secure container," "protected processing
environment," "object registration," and other
mechanisms of the purported "VDE" "invention" for
allegedly individually ensuring the "access control"
"handcuffs" between specific "controls," specific
Objects" (and their content at an arbitrary granular
level), and specific "users," the term "govern" would be
indefinite.

"a governed item contained in a secure container" is
indefinite and has no or an indefinite antecedent basis as
both "a governed item" and "a secure container."

PAGE 38- MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING US PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

hardware or software used for

- see above

transmission of secure

"hardware or software used for transmission ... or for

containers to other

the receipt ... from other apparatuses" is indefinite, e.g.,

apparatuses or for the receipt

on the structure of this "hardware or software," and on its

of secure containers from other

relationship, if any, with the previously recited

apparatuses.

"hardware or software used for receiving and opening
secure containers," and on its relationship, if any, with
any other element recited in the claim. The specification
does not disclose adequate corresponding structure.

28. A system including;

a first apparatus including;

user controls,

a communications port,

a processor,

a memory containing a first rule,

hardware or software used for receiving and opening secure containers. said secure
containers each including the capacity to contain a governed item, a secure container rule
being associated with each of said secure containers ;

a protected processing environment at least in part protecting information contained in said
protected processing environment from tampering by a user of said first apparatus, said
protected processing environment including hardware or software used for applying said
first rule and a secure container rule in combination to at least in part govern at least one
aspect of access to or use of a governed item ; and

hardware or software used for transmission of secure containers to other apparatuses or for
the receipt of secure containers from other apparatuses : and
a second apparatus including:
user controls,

a communications port,
a processor,

a memory containing a second rule,

PAGE 39 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

hardware or software used for receiving and opening secure containers. said secure
containers each including the capacity to contain a governed item, a secure container rule
being associated with each of said secure containers ;

a protected processing environment at least in part protecting information contained in said
protected processing environment from tampering by a user of said apparatus, said
protected processing environment including hardware or software used for applying said
second rule and a secure container rule in combination to at least in part govern at least one
aspect of access to or use of a governed item :

hardware or software used for transmission of secure containers to other apparatuses or for

the receipt of secure containers from other apparatuses : and

an electronic intermediary , said intermediary including a user rights authority

clearinghouse.

Following are some examples of the many ways in which this claim and these claim terms
and phrases are indefinite on the face of the patent and/or as apparently construed by InterTrust:

28. A system including:

a first apparatus including,

- the claim is indefinite on which of the recited
elements are included in the "first apparatus."

user controls,

"user controls" is indefinite.

a communications port,

a processor,

a memory containing a first
rule,

- "memory" is indefinite, e.g., on whether it
encompasses or excludes storage that is not directly
addressable by the processor.

- "containing" is indefinite and used inconsistently in
at least the allegedly incorporated specification. For
example, it is indefinite on whether it encompasses or
excludes merely holding a reference, and, if it does
encompass merely holding a reference, what type of
reference suffices to constitute "containing."

- "rule" is indefinite and is used inconsistently in the
specification. For example, the relationship between a

PAGE 40 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

"rule" and a "control" is indefinite.

hardware or software used for

see above

receiving and opening secure
containers .

- "receiving" is indefinite, e.g., on what processing, if
any, is required to complete this "receiving" step, on

what receives the "secure containers," and on what or
where they are received from.

- if "opening secure containers" is not at least limited
to successful completion of the "OPEN method"
expressly disclosed in the allegedly incorporated
specification, the phrase "opening secure containers"
would be indefinite.

- "secure container" is indefinite, e.g., on its structure
and certain of its fixnctions, and on whether it
encompasses or excludes "virtual container." The
specification does not disclose adequate corresponding
structure under Section 1 12, ^ 6.

- "container" is indefinite, e.g., on its structure and
certain of its functions, and on what distinguishes a
single "container" from two separate "containers."

- "secure" is indefinite. It is an amorphous term that
the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
of threat(s) is (are) being addressed (e.g., confidentiality?
integrity? authentication? non-repudiation? availability?)
and on the nature and the level(s) of protection from
those threats that separate(s) "secure" from "not secure."

- "hardware or software used for receiving and opening
secure containers," is indefinite, e.g., on the structure of
this "hardware or software," and on whether the same
"hardware or software" performs both "receiving" and
"opening." The specification does not disclose adequate
corresponding structure.

PAGE 41 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

said secure containers each
including the capacity to
contain a governed item,

see above

- if "said secure containers" is not at least limited to all
"secure containers" which the "hardware or software
used for receiving and opening secure containers" is able
to "receive and open" (regardless of whether it has done
so), the phrase "said secure containers" would be
indefinite.

- "contain" is indefinite and used inconsistently in at
least the allegedly incorporated specification. For
example, it is indefinite on whether it encompasses or
excludes merely holding a reference, and, if it does
encompass merely holding a reference, what type of
reference suffices to constitute "contain."

a governed item, is indefinite, e.g., on what
distinguishes "a governed item" from two separate
"governed items."

- "including the capacity to contain a governed item" is
indefinite.

a secure container rule being
associated with each of said
secure containers:

see above

- if "associated with ... secure containers" is not at least
limited to use of the disclosed "component assembly,"
"secure container," "protected processing environment,"
"object registration," and other mechanisms of the
purported "VDE" "invention" for allegedly individually
ensuring the "access control" "handcuffs" between
specific "controls," specific "objects" (and their content
at an arbitrary granular level), and specific "users," the

DliraSe "aSSOCIfltpH With CPrnrp PAntoinarc" vir/vn1i4 ka

indefinite.

- if "said secure containers" is not at least limited to all
"secure containers" which the "hardware or software
used for receiving and opening secure containers" is able

PAGE 42 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U S PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

to "receive and open" (regardless of whether it has done
so), the phrase "said secure containers" is indefinite.

protected."

- if "protected processing environment" is not at least
limited to excluding the processor and "memory" recited
earlier in the claim, and is not at least limited to
executing software and/or hardware (if any) expressly
disclosed in the specification and identified as a
"protected processing environment," the term "protected
processing environment" would be indefinite.

- if "protecting" is not at least limited to preventing
unauthorized "user" processing of a particular item on a
per item basis by use of the disclosed "component
assembly," "secure container," "protected processing
environment," "object registration," and other
mechanisms of the purported "VDE" "invention" for
allegedly individually ensuring the "access control"
"handcuffs" between specific "controls," specific
"objects" (and their content at an arbitrary granular
level), and specific "users," the term "protecting" would
be indefinite.

- "at least in part" is indefinite, and, under some
possible meanings, inconsistent with "protecting."

- "information contained in said protected processing
environment" is indefinite, e.g., on what aspects of a

a protected processing
environment at least in part
protecting information
contained in said protected
processing environment from
tampering by a user of said
first apparatus,

- "protected" is indefinite. It is an amorphous term
that the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
of threat(s) is (are) being addressed (e.g., confidentiality?
integrity? authentication? non-repudiation? availability?)
and on the nature and the level(s) of protection from
those threats that separate(s) "protected" from "not

PAGE 43 . MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U S PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

"protected processing environment" can "contain"
information, and on whether "contain" encompasses or
excludes merely holding a reference, and, if it does
encompass merely holding a reference, what type of
reference suffices to constitute "contain."

- "protecting from . . . tampering" is indefinite, e.g., on
the specific threat(s) being addressed and on the level(s)
and nature of protection from those threats.

- "a user of said first apparatus" is indefinite, e.g., on
whether "a user" means "any user" or a particular "user."

said protected processing
environment including
hardware or software used for

applying said first rule and a
secure container rule in
combination to at least in part

govern at least one aspect of
access to or use of a governed
item: and

see above

- "said first rule and a secure container rule" is
indefinite, e.g., on whether "a secure container rule" is
separate from a "first rule," and on what distinguishes a
single "rule" from two separate "rules."

- "hardware or software used for applying ... in a
secure container," is indefinite, e.g., on the structure of
this "hardware or software." The specification does not
disclose adequate corresponding structure.

- "applying ... in combination" is indefinite, e.g., on
the manner in which the "rules" are merged and applied.

- "at least in part" is indefinite, and, under some
possible meanings, inconsistent with "govern."

- if "govern" is not at least limited to preventing
unapproved user processing of a particular item on a per
item basis by use of the disclosed "component
assembly," "secure container," "protected processing
environment," "object registration," and other
mechanisms of the purported "VDE" "invention" for
allegedly individually ensuring the "access control"

handcuffs" between specific "controls," specific
objects" (and their content at an arbitrary granular

PAGE 44 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

#

level), and specific "users," the term "govern" would be
indefinite.

- "access" is indefinite, e.g., on whether it
encompasses or excludes determining the information
content of what is accessed (e.g., decrypting any
encrypted information).

- "use" is indefinite and is used inconsistently in the
allegedly incorporated specification, e.g., on whether or
not it encompasses or excludes "distribution,"
"extraction," "manipulating," and/or "copying."

- "an aspect of access to or use of is indefinite.

- "a governed item" is indefinite and has no or an
indefinite antecedent.

hardware or software used for

- see above

- "hardware or software used for transmission ... or for
the receipt ... from other apparatuses" is indefinite, e.g.,
on the structure of this "hardware or software," on its
relationship, if any, with the previously recited
"hardware or software used for receiving and opening
secure containers," on whether the same "hardware or
software" performs both, and on its relationship, if any,
with any other element recited in the claim. The
specification does not disclose adequate corresponding
Suuciure.

transmission of secure

containers to other

apparatuses or for the receipt

of secure containers from other

apparatuses: and

a sccuiiu apparatus including,

the claim is indefinite on which of the recited
elements are mciuoea in tne second apparatus.

uic i/idim ib muciiruic ior railing to iinx tne lirst
apparatus with the second apparatus in any manner.

user controls,

- "user controls" is indefinite.

a communications port,

a processor,

a memory containing a second

- "memory" is indefinite, e.g., on whether it

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rule,

encompasses or excludes storage that is not directly
addressable by the processor.

- "containing" is indefinite and used inconsistently in
at least the allegedly incorporated specification. For
example, it is indefinite on whether it encompasses or
excludes merely holding a reference, and, if it does
encompass merely holding a reference, what type of
reference suffices to constitute "containing."

- "rule" is indefinite and is used inconsistently in the
specification. For example, it is indefinite on what
distinguishes a single "rule" from two separate "rules."

hardware or software used for

- see above

- "receiving" is indefinite, e.g., on what processing, if
any, is required to complete this "receiving" step, on
what receives the "secure containers," and on what or
where they are received from.

- if "opening secure containers" is not at least limited
to successful completion of the "OPEN method"
expressly disclosed in the allegedly incorporated
specification, the phrase "opening secure containers"
would be indefinite.

- "secure container" is indefinite, e.g., on its structure
and certain of its functions, and on whether it
encompasses or excludes "virtual container." The
specification does not disclose adequate corresponding
structure under Section 1 12, 1J 6.

- "secure" is indefinite. It is an amorphous term that
the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
of threat(s) is (are) being addressed (e.g., confidentiality?
integrity? authentication? non-repudiation? availability?)
and on the nature and the level(s) of protection from

receiving and opening secure

containers.

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those threats that separate(s) "secure" from "not secure."
- "hardware or software used for receiving and opening
secure containers," is indefinite, e.g., on the structure of
this "hardware or software," and on whether the same
hardware or software performs both "receiving" and
"opening." The specification does not disclose adequate
corresponding structure.

said secure containers each
including the capacity to
contain a governed item,

see above

- if "said secure containers" is not at least limited to all
"secure containers" which the "hardware or software
used for receiving and opening secure containers" is able
to "receive and open" (regardless of whether it has done
so), the phrase "said secure containers" would be
indefinite.

- "contain" is indefinite and used inconsistently in at
least the allegedly incorporated specification. For
example, it is indefinite on whether it encompasses or
excludes merely holding a reference, and, if it does
encompass merely holding a reference, what type of
reference suffices to constitute "contain."

- "a governed item," is indefinite, e.g., on what
distinguishes "a governed item" from two separate
governed items.

- "including the capacity to contain a governed item" is
indefinite.

a secure container rule being
associated with each of said
secure containers:

- see above

- if "associated with ... secure containers" is not at least
limited to use of the disclosed component assembly,
"secure container," "protected processing environment,"
"object registration," and other mechanisms of the
purported "VDE" "invention" for allegedly individually
ensuring the "access control" "handcuffs" between

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specific "controls," specific "objects" (and their content
at an arbitrary granular level), and specific "users," the
phrase "associated with . . . secure containers" would be
indefinite.

- if "said secure containers" is not at least limited to all
"secure containers" which the "hardware or software
used for receiving and opening secure containers" is able
to "receive and open" (regardless of whether it has done
so), the phrase "said secure containers" is indefinite.

a protected processing
environment at least in part
protecting information
contained in said protected
processing environment from
tampering by a user of said
apparatus,

- "protected" is indefinite. It is an amorphous term
that the specification both fails to define and uses
inconsistently. For example, it is indefinite on what sort
of threat(s) is (are) being addressed (e.g., confidentiality?
integrity? authentication? non-repudiation? availability?)
and on the nature and the level(s) of protection from
those threats that separate(s) "protected" from "not
protected."

- if "protected processing environment" is not at least
limited to excluding the processor and "memory" recited
earlier in the claim, and is not at least limited to
executing software and/or hardware (if any) expressly
disclosed in the specification and identified as a
"protected processing environment," the term "protected
processing environment" would be indefinite.

- if "protecting" is not at least limited to preventing
unauthorized "user" processing of a particular item on a
per item basis by use of the disclosed "component
assembly, secure container, protected processmg
environment," "object registration," and other
mechanisms of the purported "VDE" "invention" for
allegedly individually ensuring the "access control"
"handcuffs" between specific "controls," specific

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"objects" (and their content at an arbitrary granular
level), and specific "users," the term "protecting" would
be indefinite.

- "at least in part" is indefinite, and, under some
possible meanings, inconsistent with "protecting."

- "information contained in said protected processing
environment" is indefinite, e.g., on what aspects of a
"protected processing environment" can "contain"
information, and on whether "contain" encompasses or
excludes merely holding a reference, and, if it does
encompass merely holding a reference, what type of
reference suffices to constitute "contain."

- "protecting from . . . tampering" is indefinite, e.g., on
the specific threat(s) being addressed and on the level(s)
and nature of protection from those threats.

- "a user of said apparatus" is indefinite, e.g., on
whether "a user" means "any user" or a particular "user,"
and on whether "said apparatus" is the first or second
apparatus.

said protected processing
environment including
hardware or software used for
applvine said second rule and a

- see above

- "said second rule and a secure container rule" is
indefinite, e.g., on what distinguishes a single "rule"
from two separate "rules."

- "hardware or software used for applying ... in a
secure container," is indefinite, e.g., on the structure of
this "hardware or software." The specification does not
disclose adequate corresponding structure.

- "applying ... in combination" is indefinite, e.g., on
the manner in which the rules are merged and applied.

- "at least in part" is indefinite, and, under some
possible meanings, inconsistent with "govern."

- if "govern" is not at least limited to preventing

secure container rule in
combination to at least in Dart

govern at least one aspect of
access to or use of a governed
item; and

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unauthorized "user" processing of a particular item on a
per item basis by use of the disclosed "component
assembly," "secure container," "protected processing
environment," "object registration," and other
mechanisms of the purported "VDE" "invention" for
allegedly individually ensuring the "access control"
"handcuffs" between specific "controls," specific
"objects" (and their content at an arbitrary granular
level), and specific "users," the term "govern" would be
indefinite.

- "access" is indefinite, e.g., on whether it
encompasses or excludes determining the information
content of what is "accessed" (e.g., decrypting any
encrypted information).

- "use" is indefinite and is used inconsistently in the
allegedly incorporated specification, e.g., on whether or
not it encompasses or excludes "distribution,"
"extraction," "manipulating," and/or "copying."

- "an aspect of access to or use of is indefinite.

- "a governed item" is indefinite and has no or an
indefinite antecedent.

hardware or software used for
transmission of secure
containers to other
apparatuses or for the receipt

of secure containers from other
apparatuses : and

see above

- "hardware or software used for transmission ... or for
the receipt ... from other apparatuses" is indefinite, e.g.,
on the structure of this "hardware or software," and on its
relationship, if any, with the previously recited
"hardware or software used for receiving and opening
secure containers," and on its relationship, if any, with
any other element recited in the claim. The specification
does not disclose adequate corresponding structure.

an electronic intermediary , said
intermediary including a user

see above

"electronic intermediary" is indefinite, e.g., as to the

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nature of its structure and function, and its relationship, if
any, to either the first apparatus or the second apparatus,
or to any other element of the claim, and on whether it
encompasses or excludes a "virtual intermediary" or
"virtual go-between." The specification does not
disclose adequate corresponding structure.

- "rights" is indefinite.

- "user rights authority clearinghouse" is indefinite,
e.g., as to the nature of its structure and function, and its
relationship, if any, to either the first apparatus or the
second apparatus, or to any other element of the claim.
The specification does not disclose adequate
corresponding structure.

29. A system as in claim 28, said user rights authority clearinghouse operatively connected to
make rights available to users.

Following are some examples of the additional ways in which this dependent claim and
these claim terms and phrases are indefinite on the face of the patent and/or as apparently
construed by InterTrust:

A system as in claim 28, said user

- see above

rights authority clearinghouse

- "operatively connected" is indefinite, e.g., as to what

operatively connected to make

it is connected.

rights available to users.

- "to make rights available to users" is indefinite, e.g.,

on which "users" it addresses and what it means for

"rights" to be "available" to those "users."

Enablement and Written Description

Invalidity of the Asserted InterTrust Patent Claims

Each of the asserted InterTrust patent claims is invalid for violating the written description
and enablement requirements of 35 U.S.C. § 1 12, H 1, particularly as the claims are construed in
the untenable manner apparently underlying InterTrust's infringement accusations in this action.

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One way in which the claims of the £ 193 patent and the '683 patent (including but not
limited to the extent the allegedly incorporated applications are considered) are not enabled is that
the applications from which they issued are so rambling, unfocused, vague and internally
inconsistent that they obfuscated any alleged teaching of the claimed subject matter and failed to
enable one of skill in the art, without undue experimentation, to follow any alleged directions of
the application to carry out the claimed subject matter.

The claims are invalid for violating the written description requirement to the extent that
they are construed so as to contradict and/or not require the essential, non-optional alleged
attributes of the alleged "invention" that were identified in the application (as originally filed,
disregarding all new matter) from which the claims issued. Those disclosed "invention" defining
statements include descriptions of the "present invention" and/or "VDE" or "virtual distribution
environment," statements distinguishing prior techniques or products, such statements in the
Summary of the Invention or Objects of the Invention sections of the application, and non-
optional attributes shared by the disclosed embodiments and/or initial application claims. They
include, but are not limited to, such alleged attributes reflected in the below-listed exemplary
statements in the applications filed on December 9, 1998 (the '193 Patent), December 28, 1998
(the '683 Patent), and/or similar statements in the patents' Patent Office prosecution histories
and/or any properly incorporated patent(s) or patent application(s), if any.

The claims are further invalid under the enablement requirement as the applications did
not enable those of skill in the art to build systems having these touted attributes, at least not
without an unreasonable amount of experimentation.

• "The present invention provides a new kind of "virtual distribution environment" (called
"VDE" in this document) that secures, administers, and audits electronic information use. VDE
also features fundamentally important capabilities for managing content that travels "across" the
"information highway." These capabilities comprise a rights protection solution that serves all
electronic community members. These members include content creators and distributors,
financial service providers, end-users, and others. VDE is the first general purpose, configurable,
transaction control/rights protection solution for users of computers, other electronic appliances,
networks, and the information highway."

• "The inability of conventional products to be shaped to the needs of electronic information
providers and users is sharply in contrast to the present invention. Despite the attention devoted

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by a cross-section of America's largest telecommunications, computer, entertainment and
information provider companies to some of the problems addressed by the present invention, only
the present invention provides commercially secure, effective solutions for configurable, general
purpose electronic commerce transaction/distribution control systems."

• "VDE may be used to provide basic usage control in several ways. First, it permits the
"embedding" of multiple containers within a single object. Embedded objects permit the
"nesting" of control structures within a container. VDE also extends usage control information to
an arbitrary granular level (as opposed to a file based level provided by traditional operating
systems) and provides flexible control information over any action associated with the
information which can be described as a VDE controlled process."

• "Providers of "electronic currency" have also created protections for their type of content.
These systems are not sufficiently adaptable, efficient, nor flexible enough to support the
generalized use of electronic currency. Furthermore, they do not provide sophisticated auditing
and control configuration capabilities. This means that current electronic currency tools lack the
sophistication needed for many real- world financial business models. VDE provides means for
anonymous currency and for "conditionally" anonymous currency, wherein currency related
activities remain anonymous except under special circumstances."

• "Traditional content control mechanisms often require users to purchase more electronic
information than the user needs or desires. For example, infrequent users of shrink-wrapped
software are required to purchase a program at the same price as frequent users, even though they
may receive much less value from their less frequent use. Traditional systems do not scale cost
according to the extent or character of usage and traditional systems can not attract potential
customers who find that a fixed price is too high. Systems using traditional mechanisms are also
not normally particularly secure. For example, shrink-wrapping does not prevent the constant
illegal pirating of software once removed from either its physical or electronic package."

• "Traditional electronic information rights protection systems are often inflexible and
inefficient and may cause a content provider to choose costly distribution channels that increase a
product's price. In general these mechanisms restrict product pricing, configuration, and
marketing flexibility. These compromises are the result of techniques for controlling information
which cannot accommodate both different content models and content models which reflect the
many, varied requirements, such as content delivery strategies, of the model participants. This can

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limit a provider's ability to deliver sufficient overall value to justify a given product's cost in the
eyes of many potential users. VDE allows content providers and distributors to create applications
and distribution networks that reflect content providers 1 and users' preferred business models. It
offers users a uniquely cost effective and feature rich system that supports the ways providers
want to distribute information and the ways users want to use such information."

• "VDE provides important enhancements for improving data security in organizations by
providing "smart" transaction management features that can be far more effective than key and
password based "go/no go" technology."

• "A variety of capabilities are required to implement an electronic commerce environment.
VDE is the first system that provides many of these capabilities and therefore solves fundamental
problems related to electronic dissemination of information."

• "The scalable transaction management/auditing technology of the present invention will result
in more efficient and reliable interoperability amongst devices functioning in electronic
commerce and/or data security environments."

• "Templates, classes (including user groups employing an object under group access), and
flexible control structures including object "independent" permissions records (permissions that
can be associated with a plurality of objects) and structures that support budgeting and auditing as
separate VDE processes, help focus the flexible and configurable capabilities inherent within
authoring provided by the present invention in the context of specific industries and/or businesses
and/or applications. ... The VDE templates, classes, and control structures are inherently flexible
and configurable to reflect the breadth of information distribution and secure storage
requirements, ... the present invention truly achieves a content control and auditing architecture
that can be configured to most any commercial distribution embodiment."

• "The design of the VDE foundation, VDE load modules, and VDE containers, are important
features that enable the VDE node operating environment to be compatible with a very broad
range of electronic appliances."

• "Each logical object structure 800 may also include a "private body" 806 containing or
referencing a set of methods 1000 (i.e., programs or procedures) that control use and distribution
of the object 300. The ability to optionally incorporate different methods 1000 with each object is
important to making VDE 100 highly configurable."

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• "A significant facet of the present invention's ability to broadly support electronic commerce
is its ability to securely manage independently delivered VDE component objects containing
control information (normally in the form of VDE objects containing one or more methods, data,
or load module VDE components). This independently delivered control information can be
integrated with senior and other pre-existing content control information to securely form derived
control information using the negotiation mechanisms of the present invention. All requirements
specified by this derived control information must be satisfied before VDE controlled content can
be accessed or otherwise used. This means that, for example, all load modules and any mediating
data which are listed by the derived control information as required must be available and
securely perform their required function."

• "A significant feature of VDE accommodates the many, varying distribution and other
transaction variables by, in part, decomposing electronic commerce and data security functions
into generalized capability modules executable within a secure hardware SPU and/or
corresponding software subsystem and further allowing extensive flexibility in assembling,
modifying, and/or replacing, such modules (e.g. load modules and/or methods) in applications run
on a VDE installation foundation. This configurability and reconfigurability allows electronic
commerce and data security participants to reflect their priorities and requirements through a
process of iteratively shaping an evolving extended electronic agreement (electronic control
model). This shaping can occur as content control information passes from one VDE participant
to another and to the extent allowed by "in place" content control information. This process
allows users of VDE to recast existing control information and/or add new control information as
necessary (including the elimination of no longer required elements)."

• "VDE's fundamental configurability will allow a broad range of competitive electronic
commerce business models to flourish."

• "Adding new content to objects is an important aspect of authoring provided by the present
invention. Providers may wish to allow one or more users to add, hide, modify, remove and/or
extend content that they provide. In this way, other users may add value to, alter for a new
purpose, maintain, and/or otherwise change, existing content. The ability to add content to an
empty and/or newly created object is important as well."

• "Importantly, VDE securely and flexibly supports editing the content in, extracting content
from, embedding content into, and otherwise shaping the content composition of, VDE content

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containers. Such capabilities allow VDE supported product models to evolve by progressively
reflecting the requirements of "next" participants in an electronic commercial model."

• "Some of the key factors contributing to the configurability intrinsic to the present invention
include: (a) integration into the fundamental control environment of a broad range of electronic
appliances through portable API and programming language tools that efficiently support
merging of control and auditing capabilities in nearly any electronic appliance environment while
maintaining overall system security;"

• "Taken together, and employed at times with VDE administrative objects and VDE security
arrangements and processes, the present invention truly achieves a content control and auditing
architecture that can be configured to most any commercial distribution embodiment."

• "Some of the key factors contributing to the configurability intrinsic to the present invention
include: (c) generic content model;"

• "Some of the key factors contributing to the configurability intrinsic to the present invention
include: (b) modular data structures;"

• "Some of the key factors contributing to the configurability intrinsic to the present invention
include: (d) general modularity and independence of foundation architectural components;"

• "Some of the key factors contributing to the configurability intrinsic to the present invention
include: (e) modular security structures;"

• "Some of the key factors contributing to the configurability intrinsic to the present invention
include: (f) variable length and multiple branching chains of control; and"

• "Some of the key factors contributing to the configurability intrinsic to the present invention
include: (g) independent, modular control structures in the form of executable load modules that
can be maintained in one or more libraries, and assembled into control methods and models, and
where such model control schemes can "evolve" as control information passes through the VDE
installations of participants of a pathway of VDE content control information handling."

• "An important feature of VDE is that it can be used to assure the administration of, and
adequacy of security and rights protection for, electronic agreements implemented through the
use of the present invention."

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• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, VDE includes features that: ... "sufficiently"
impede unauthorized and/or uncompensated use of electronic information and/or appliances
through the use of secure communication, storage, and transaction management technologies ...."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, ... support low-cost, efficient, and effective
security architectures for transaction control, auditing, reporting, and related communications and
information storage

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, ... support dynamic user selection of
information subsets of a VDE electronic information product (VDE controlled content). This
contrasts with the constraints of having to use a few high level individual, pre-defined content
provider information increments such as being required to select a whole information product or
product section in order to acquire or otherwise use a portion of such product or section."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, ... securely store at a user's site potentially
highly detailed information reflective of a user's usage of a variety of different content segment
types... support trusted chain of handling capabilities for pathways of distributed electronic
information and/or for content usage related information."

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• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . support flexible auditing mechanisms,
such as employing "bitmap meters, ..."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . support "launchable" content, that is
content that can be provided by a content provider to an end-user, who can then copy or pass
along the content to other end-user parties without requiring the direct participation of a content
provider to register and/or otherwise initialize the content for use

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . securely support electronic currency and
credit usage control, storage, and communication at, and between, VDE installations."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . provide smart object agents that can carry
requests, data, and/or methods, including budgets, authorizations, credit or currency, and content.

. . . Smart objects can, for example, be transmitted to a remote location to perform a specified
database search on behalf of a user . . . ."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic

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commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . "employ "templates" to ease the process
of configuring capabilities of the present invention as they relate to specific industries or
businesses. .. .Given the very large range of capabilities and configurations supported by the
present invention, reducing the range of configuration opportunities to a manageable subset
particularly appropriate for a given business model allows the full configurable power of the
present invention to be easily employed by "typical" users who would be otherwise burdened
with complex programming and/or configuration design responsibilities template applications can
also help ensure that VDE related processes are secure and optimally bug free by reducing the
risks associated with the contribution of independently developed load modules, including
unpredictable aspects of code interaction between independent modules and applications, as well
as security risks associated with possible presence of viruses in such modules. ... As the context
surrounding these templates changes or evolves, template applications provided under the present
invention may be modified to meet these changes for broad use, or for more focused activities.
Of course, templates may, under certain circumstances have fixed control information and not
provide for user selections or parameter data entry."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . provide mechanisms to persistently
maintain trusted content usage and reporting control information through both a sufficiently
secure chain of handling of content and content control information and through various forms of
usage of such content wherein said persistence of control may survive such use. Persistence of
control includes the ability to extract information from a VDE container object by creating a new
container whose contents are at least in part secured and that contains both the extracted content
and at least a portion of the control information which control information of the original
container and/or are at least in part produced by control information of the original container for
this purpose and/or VDE installation control information stipulates should persist and/or control
usage of content in the newly formed container. Such control information can continue to manage
usage of container content if the container is "embedded" into another VDE managed object, such

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as an object which contains plural embedded VDE containers, each of which contains content
derived (extracted) from a different source."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . enables users ... to specify preferences or
requirements related to their use of electronic content and/or appliances. Content users, such as
end-user customers using commercially distributed content ... can define, if allowed by senior
control information, budgets, and/or other control information, to manage their own internal use
of content. Uses include, for example, a user setting a limit on the price for electronic documents
that the user is willing to pay without prior express user authorization, and the user establishing
the character of metering information he or she is willing to allow to be collected (privacy
protection)."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . provide mechanisms that allow control
information to "evolve" and be modified according, at least in part, to independently, securely
delivered further control information. ... Handlers in a pathway of handling of content control
information, to the extent each is authorized, can establish, modify, and/or contribute to,
permission, auditing, payment, and reporting control information related to controlling, analyzing,
paying for, and/or reporting usage of, electronic content and/or appliances (for example, as
related to usage of VDE controlled property content)."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . support multiple simultaneous control
models for the same content property and/or property portion. This allows, for example, for

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concurrent business activities which are dependent on electronic commercial product content
distribution, such as acquiring detailed market survey information and/or supporting advertising,
both of which can increase revenue and result in lower content costs to users and greater value to
content providers."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, ... enable a user to securely extract, through
the use of the secure subsystem at the user's VDE installation, at least a portion of the content
included within a VDE content container to produce a new, secure object (content container),
such that the extracted information is maintained in a continually secure manner through the
extraction process."

• "it is important to provide a framework of operation and/or structure to allow existing
industries and/or applications and/or businesses to manipulate familiar concepts related to content
types, distribution approaches, pricing mechanisms, user interactions with content and/or related
administrative activities, budgets, and the like."

• "The present invention allows content providers and users to formulate their transaction
environment to accommodate:

- (1) desired content models, content control models, and content usage information pathways,

- (2) a complete range of electronic media and distribution means,

- (3) a broad range of pricing, payment, and auditing strategies,

- (4) very flexible privacy and/or reporting models,

- (5) practical and effective security architectures, and

- (6) other administrative procedures that together with steps (1) through (5) can enable most
"real world" electronic commerce and data security models, including models unique to the
electronic world."

• "This ability of the present invention to support multiple pathway branches for the flow of
both VDE content control information and VDE managed content enables an electronic

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commerce marketplace which supports diverging, competitive business partnerships, agreements,
and evolving overall business models which can employ the same content properties combined,
for example, in differing collections of content representing differing at least in part competitive
products."

• "the present invention can help ensure, for example, that parties, will be paid for use of
distributed information in a manner consistent with their agreement; ... the present invention can,
for example, help ensure that data is used only in authorized ways;

• "The VDE templates, classes, and control structures are inherently flexible and configurable
to reflect the breadth of information distribution and secure storage requirements, to allow for
efficient adaptation into new industries as they evolve, and to reflect the evolution and/or change
of an existing industry and/or business, as well as to support one or more groups of users who
may be associated with certain permissions and/or budgets and object types. The flexibility of
VDE templates, classes, and basic control structures is enhanced through the use of VDE
aggregate and control methods which have a compound, conditional process impact on object
control. Taken together, and employed at times with VDE administrative objects and VDE
security arrangements and processes, the present invention truly achieves a content control and
auditing architecture that can be configured to most any commercial distribution embodiment.
Thus, the present invention fully supports the requirements and biases of content providers
without forcing them to fit a predefined application model. It allows them to define the rights,
control information, and flow of their content (and the return of audit information) through
distribution channels."

• "a creator . . . may allow changes by an auditor for event trails, but not allow anyone but
themselves to read those trails ..."

• "Since all secure communications are at least in part encrypted and the processing inside the
secure subsystem is concealed from outside observation and interference, the present invention
ensures that content control information can be enforced. As a result, the creator and/or
distributor and/or client administrator and/or other contributor of secure control information for
each property (for example, an end-user restricting the kind of audit information he or she will
allow to be reported and/or a financial clearinghouse establishing certain criteria for use of its
credit for payment for use of distributed content) can be confident that their contributed and

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accepted control information will be enforced (within the security limitations of a given VDE
security implementation design)."

• "Since different groups of components can be put together for different applications, the
present invention can provide electronic control information for a wide variety of different
products and markets. This means the present invention can provide a "unified," efficient, secure,
and cost-effective system for electronic commerce and data security. This allows VDE to serve as
a single standard for electronic rights protection, data security, and electronic currency and
banking."

• "In a VDE, the separation between a rights application and its foundation permits the efficient
selection of sets of control information that are appropriate for each of many different types of
applications and uses."

• "Due to its open design, VDE allows (normally under securely controlled circumstances)
applications using technology independently created by users to be "added" to the system and
used in conjunction with the foundation of the invention."

• "In sum, the present invention allows information contained in electronic information
products to be supplied according to user specification. Tailoring to user specification allows the
present invention to provide the greatest value to users, which in turn will generate the greatest
amount of electronic commerce activity."

• "VDE permits multiple, separate electronic arrangements to be formed between subsets of
parties in a VDE supported electronic value chain model. These multiple agreements together
comprise a VDE value chain "extended" agreement. VDE allows such constituent electronic
agreements, and therefore overall VDE extended agreements, to evolve and reshape over time as
additional VDE participants become involved in VDE content and/or appliance control
information handling. VDE electronic agreements may also be extended as new control
information is submitted by existing participants. With VDE, electronic commerce participants
are free to structure and restructure their electronic commerce business activities and
relationships. As a result, the present invention allows a competitive electronic commerce
marketplace to develop since the use of VDE enables different, widely varying business models
using the same or shared content."

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• "A feature of the present invention enables such flexibility of metering control mechanisms to
accommodate a simultaneous, broad array of: (a) different parameters related to electronic
information content use; (b) different increment units (bytes, documents, properties, paragraphs,
images, etc.) and/or other organizations of such electronic content; and/or (c) different categories
of user and/or VDE installation types, such as client organizations, departments, projects,
networks, and/or individual users, etc. This feature of the present invention can be employed for

• "A feature of the present invention provides for payment means supporting flexible electronic
currency and credit mechanisms, including the ability to securely maintain audit trails reflecting
information related to use of such currency or credit."

• "Features of the present invention help ensure that a requirement that a clearinghouse report
such usage information and payment content will be observed."

• "A feature of the present invention is the use of portable VDEs as transaction cards at retail
and other establishments, wherein such cards can "dock" with an establishment terminal that has a
VDE secure sub-system and/or an online connection to a VDE secure and/or otherwise secure and
compatible subsystem, such as a "trusted" financial clearinghouse (e.g., VISA, Mastercard)."

• "A feature of VDE provided by the present invention is that certain one or more methods can
be specified as required in order for a VDE installation and/or user to be able to use certain and/or
all content. For example, a distributor of a certain type of content might be allowed by "senior"
participants (by content creators, for example) to require a method which prohibits end-users
from electronically saving decrypted content, a provider of credit for VDE transactions might
require an audit method that records the time of an electronic purchase, and/or a user might
require a method that summarizes usage information for reporting to a clearinghouse (e.g. billing
information) in a way that does not convey confidential, personal information regarding detailed
usage behavior. A further feature of VDE provided by the present invention is that creators,
distributors, and users of content can select from among a set of predefined methods (if available)
to control container content usage and distribution functions and/or they may have the right to
provide new customized methods to control at least certain usage functions (such "new" methods
may be required to be certified for trustedness and interoperability to the VDE installation and/or
for of a group of VDE applications). As a result, VDE provides a very high degree of

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configurability with respect to how the distribution and other usage of each property or object (or
one or more portions of objects or properties as desired and/or applicable) will be controlled."

• "the present invention's trusted/secure, universe wide, distributed transaction control and
administration system."

• "The configurability provided by the present invention is particularly critical for supporting
electronic commerce, that is enabling businesses to create relationships and evolve strategies that
offer competitive value. Electronic commerce tools that are not inherently configurable and
interoperable will ultimately fail to produce products (and services) that meet both basic
requirements and evolving needs of most commerce applications."

• "Templates, classes (including user groups employing an object under group access), and
flexible control structures including object "independent" permissions records (permissions that
can be associated with a plurality of objects) and structures that support budgeting and auditing as
separate VDE processes, help focus the flexible and configurable capabilities inherent within
authoring provided by the present invention in the context of specific industries and/or businesses
and/or applications. ... The VDE templates, classes, and control structures are inherently flexible
and configurable to reflect the breadth of information distribution and secure storage
requirements, ... the present invention truly achieves a content control and auditing architecture
that can be configured to most any commercial distribution embodiment."

• "As with the content control information for most VDE managed content, features of the
present invention allows [sic] the content's control information to: (a) "evolve," for example, the
extractor of content may add new control methods and/or modify control parameter data, such as
VDE application compliant methods, to the extent allowed by the content's in-place control
information. .. . (b) allow a user to combine additional content with at least a portion of said
extracted content, . (c) allow a user to securely edit at least a portion of said content while
maintaining said content in a secure form within said VDE content container; . (d) append
extracted content to a pre-existing VDE content container object and attach associated control
information . . . (e) preserve VDE control over one or more portions of extracted content after
various forms of usage of said portions ... Generally, the extraction features of the present
invention allow users to aggregate and/or disseminate and/or otherwise use protected electronic
content information extracted from content container sources while maintaining secure VDE

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capabilities thus preserving the rights of providers in said content information after various
content usage processes."

• "For example, features of the present invention include: (a) VDE system software to in part
extend and/or modify host operating systems such that they possesses VDE capabilities, such as
enabling secure transaction processing and electronic information storage; (b) one or more
application programs that in part represent tools associated with VDE operation; and/or (c) code
to be integrated into application programs, wherein such code incorporates references into VDE
system software to integrate VDE capabilities and makes such applications VDE aware

• "The distribution control information provided by the present invention allow flexible positive
control. No provider is required to include any particular control, or use any particular strategy,
except as required by senior control information. Rather, the present invention allows a provider
to select from generic control components (which may be provided as a subset of components
appropriate to a provider's specific market, for example, as included in and/or directly compatible
with, a VDE application) to establish a structure appropriate for a given chain of
handling/control."

• "In part, security is enhanced by object methods employed by the present invention because
the encryption schemes used to protect an object can efficiently be further used to protect the
associated content control information (software control information and relevant data) from
modification."

• "Control methods are created primarily through the use of one or more of said executable,
reusable load module code pieces (normally in the form of executable object components) and
associated data. The component nature of control methods allows the present invention to
efficiently operate as a highly configurable content control system. Under the present invention,
content control models can be iteratively and asynchronously shaped, and otherwise updated to
accommodate the needs of VDE participants to the extent that such shaping and otherwise
updating conforms to constraints applied by a VDE application, if any (e.g., whether new
component assemblies are accepted and, if so, what certification requirements exist for such
component assemblies or whether any or certain participants may shape any or certain control
information by selection amongst optional control information (permissions record) control
methods. This iterative (or concurrent) multiple participant process occurs as a result of the

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submission and use of secure, control information components (executable code such as load
modules and/or methods, and/or associated data)."

• "The special purpose secure circuitry provided by the present invention includes at least one
of: a dedicated semiconductor arrangement known as a Secure Processing Unit (SPU) and/or a
standard microprocessor, microcontroller, and/or other processing logic that accommodates the
requirements of the present invention and functions as an SPU."

• "VDE offers an architecture that avoids reflecting specific distribution biases, administrative
and control perspectives, and content types. Instead, VDE provides a broad-spectrum,
fundamentally configurable and portable, electronic transaction control, distributing, usage,
auditing, reporting, and payment operating environment. VDE is not limited to being an
application or application specific toolset that covers only a limited subset of electronic
interaction activities and participants. Rather, VDE supports systems by which such applications
can be created, modified, and/or reused. As a result, the present invention answers pressing,
unsolved needs by offering a system that supports a standardized control environment which
facilitates interoperability of electronic appliances, interoperability of content containers, and
efficient creation of electronic commerce applications and models through the use of a
programmable, secure electronic transactions management foundation and reusable and
extensible executable components. VDE can support a single electronic "world" within which
most forms of electronic transaction activities can be managed."

• "A fundamental problem for electronic content providers is extending their ability to control
the use of proprietary information. Content providers often need to limit use to authorized
activities and amounts. Participants in a business model involving, for example, provision of
movies and advertising on optical discs may include actors, directors, script and other writers,
musicians, studios, publishers, distributors, retailers, advertisers, credit card services, and content
end-users. These participants need the ability to embody their range of agreements and
requirements, including use limitations, into an "extended" agreement comprising an overall
electronic business model. This extended agreement is represented by electronic content control
information that can automatically enforce agreed upon rights and obligations. Under VDE, such
an extended agreement may comprise an electronic contract involving all business model
participants. Such an agreement may alternatively, or in addition, be made up of electronic
agreements between subsets of the business model participants. Through the use of VDE,

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electronic commerce can function in the same way as traditional commerce-that is commercial
relationships regarding products and services can be shaped through the negotiation of one or
more agreements between a variety of parties."

• "VDE allows the owners and distributors of electronic digital information to reliably bill for,
and securely control, audit, and budget the use of, electronic information. It can reliably detect
and monitor the use of commercial information products."

• "VDE provides comprehensive and configurable transaction management, metering and
monitoring technology."

• "Protecting the rights of electronic community members involves a broad range of
technologies. VDE combines these technologies in a way that creates a "distributed" electronic
rights protection "environment." This environment secures and protects transactions and other
processes important for rights protection. VDE, for example, provides the ability to prevent, or
impede, interference with and/or observation of, important rights related transactions and
processes."

• "VDE is a cost-effective and efficient rights protection solution that provides a unified,
consistent system for securing and managing transaction processing. VDE can: (a) audit and
analyze the use of content, (b) ensure that content is used only in authorized ways, and (c) allow
information regarding content usage to be used only in ways approved by content users."

• "VDE provides a unified solution that allows all content creators, providers, and users to
employ the same electronic rights protection solution. . . . VDE can allow content to be exchanged
"universally" and users of an implementation of the present invention can interact electronically
without fear of incompatibilities in content control, violation of rights, or the need to get, install,
or learn a new content control system."

• "In addition, VDE:

- (a) is very configurable, modifiable, and re-usable;

- (b) supports a wide range of useful capabilities that may be combined in different ways to
accommodate most potential applications;

- (c) operates on a wide variety of electronic appliances ranging from hand-held inexpensive
devices to large mainframe computers;

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- (d) is able to ensure the various rights of a number of different parties, and a number of
different rights protection schemes, simultaneously;

- (e) is able to preserve the rights of parties through a series of transactions that may occur at
different times and different locations;

- (f) is able to flexibly accommodate different ways of securely delivering information and
reporting usage; and

- (g) provides for electronic analogues to "real" money and credit, including anonymous
electronic cash, to pay for products and services and to support personal (including home)
banking and other financial activities."

• "Users of VDE will not require additional rights protection systems for different information
highway products and rights problems-nor will they be required to install and learn a new system
for each new information highway application. . . The content and control information supplied by
one group can be used by people who normally use content and control information supplied by a
different group. VDE can allow content to be exchanged "universally" and users of an
implementation of the present invention can interact electronically without fear of
incompatibilities in content control, violation of rights, or the need to get, install, or learn a new
content control system."

• "[VDE] can protect electronic rights including: (d) the privacy rights of users of content,

• "Secure VDE hardware (also known as SPUs for Secure Processing Units), or VDE
installations that use software to substitute for, or complement, said hardware (provided by Host
Processing Environments (HPEs)), operate in conjunction with secure communications, systems
integration software, and distributed software control information and support structures, to
achieve the electronic contract/rights protection environment of the present invention. Together,
these VDE components comprise a secure, virtual, distributed content and/or appliance control,
auditing (and other administration), reporting, and payment environment. In some embodiments
and where commercially acceptable, certain VDE participants, such as clearinghouses that
normally maintain sufficiently physically secure non-VDE processing environments, may be
allowed to employ HPEs rather VDE hardware elements and interoperate, for example, with VDE
end-users and content providers."

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• "VDE provides generalized configurability. This results, in part, from decomposition of
generalized requirements for supporting electronic commerce and data security into a broad range
of constituent "atomic" and higher level components (such as load modules, data elements, and
methods) that may be variously aggregated together to form control methods for electronic
commerce applications, commercial electronic agreements, and data security arrangements."

• "VDE provides a secure operating environment employing VDE foundation elements along
with secure independently deliverable VDE components that enable electronic commerce models
and relationships to develop."

• "VDE specifically supports the unfolding of distribution models in which content providers,
over time, can expressly agree to, or allow, subsequent content providers and/or users to
participate in shaping the control information for, and consequences of, use of electronic content
and/or appliances. A very broad range of the functional attributes important for supporting simple
to very complex electronic commerce and data security activities are supported by capabilities of
the present invention. As a result, VDE supports most types of electronic information and/or
appliance: usage control (including distribution), security, usage auditing, reporting, other
administration, and payment arrangements."

• "VDE supports a general purpose foundation for secure transaction management, including
usage control, auditing, reporting, and/or payment. This general purpose foundation is called
"VDE Functions" ("VDEFs"). VDE also supports a collection of "atomic" application elements
(e.g., load modules) that can be selectively aggregated together to form various VDEF
capabilities called control methods and which serve as VDEF applications and operating system
functions."

• "VDE provides organization, community, and/or universe wide secure environments whose
integrity is assured by processes securely controlled in VDE participant user installations
(nodes)."

• "the end-to-end nature of VDE applications, in which content 108 flows in one direction,
generating reports and bills 1 18 in the other, makes it possible to perform "back-end" consistency
checks."

• "VDE can protect a collection of rights belonging to various parties having in rights in, or to,
electronic information. This information may be at one location or dispersed across (and/or

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moving between) multiple locations. The information may pass through a "chain" of distributors
and a "chain" of users. Usage information may also be reported through one or more "chains" of
parties. In general, VDE enables parties that (a) have rights in electronic information, and/or (b)
act as direct or indirect agents for parties who have rights in electronic information, to ensure that
the moving, accessing, modifying, or otherwise using of information can be securely controlled
by rules regarding how, when, where, and by whom such activities can be performed."

• "VDE is a secure system for regulating electronic conduct and commerce. Regulation is
ensured by control information put in place by one or more parties. These parties may include
content providers, electronic hardware manufacturers, financial service providers, or electronic
"infrastructure" companies such as cable or telecommunications companies."

• "A rights application under VDE is made up of special purpose pieces, each of which can
correspond to one or more basic electronic processes needed for a rights protection environment.
These processes can be combined together like building blocks to create electronic agreements
that can protect the rights, and may enforce fulfillment of the obligations, of electronic
information users and providers. One or more providers of electronic information can easily
combine selected building blocks to create a rights application that is unique to a specific content
distribution model. A group of these pieces can represent the capabilities needed to fulfill the
agreement(s) between users and providers. These pieces accommodate many requirements of
electronic commerce including: the distribution of permissions to use electronic information; the
persistence of the control information and sets of control information managing these
permissions; configurable control set information that can be selected by users for use with such
information; data security and usage auditing of electronic information; and a secure system for
currency, compensation and debit management."

• "VDE allows electronic arrangements to be created involving two or more parties. These
agreements can themselves comprise a collection of agreements between participants in a
commercial value chain and/or a data security chain model for handling, auditing, reporting, and
payment. It can provide efficient, reusable, modifiable, and consistent means for secure electronic
content: distribution, usage control, usage payment, usage auditing, and usage reporting."

• "The features of VDE allow it to function as the first trusted electronic information control
environment that can conform to, and support, the bulk of conventional electronic commerce and
data security requirements. In particular, VDE enables the participants in a business value chain

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model to create an electronic version of traditional business agreement terms and conditions and
further enables these participants to shape and evolve their electronic commerce models as they
believe appropriate to their business requirements."

• "VDE provides the widely varying secure control and administration capabilities required for:
1 . Different types of electronic content,

- 2. Differing electronic content delivery schemes,

- 3. Differing electronic content usage schemes,

- 4. Different content usage platforms, and

- 5. Differing content marketing and model strategies."

• "VDE controls auditing and reporting of electronic content and/or appliance usage."

• "VDE also securely supports the payment of money owed (including money owed for content
and/or appliance usage) by one or more parties to one or more other parties, in the form of
electronic credit and/or currency."

• "VDE can securely manage the integration of control information provided by two or more
parties. As a result, VDE can construct an electronic agreement between VDE participants that
represent a "negotiation" between, the control requirements of, two or more parties and enacts
terms and conditions of a resulting agreement. VDE ensures the rights of each party to an
electronic agreement regarding a wide range of electronic activities related to electronic
information and/or appliance usage."

• "VDE does not require electronic content providers and users to modify their business
practices and personal preferences to conform to a metering and control application program that
supports limited, largely fixed finctionality. Furthermore, VDE permits participants to develop
business models not feasible with non- electronic commerce, for example, involving detailed
reporting of content usage information, large numbers of distinct transactions at hitherto
infeasibly low price points, "pass-along" control information that is enforced without involvement
or advance knowledge of the participants, etc."

• "VDE can support "real" commerce in an electronic form, that is the progressive creation of
commercial relationships that form, over time, a network of interrelated agreements representing
a value chain business model. This is achieved in part by enabling content control information to

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develop through the interaction of (negotiation between) securely created and independently
submitted sets of content and/or appliance control information. Different sets of content and/or
appliance control information can be submitted by different parties in an electronic business value
chain enabled by the present invention. These parties create control information sets through the
use of their respective VDE installations. Independently, securely deliverable, component based
control information allows efficient interaction among control information sets supplied by
different parties."

• "Employing VDE as a general purpose electronic transaction/distribution control system
allows users to maintain a single transaction management control arrangement on each of their
computers, networks, communication nodes, and/or other electronic appliances. Such a general
purpose system can serve the needs of many electronic transaction management applications
without requiring distinct, different installations for different purposes. As a result, users of VDE
can avoid the confusion and expense and other inefficiencies of different, limited purpose
transaction control applications for each different content and/or business model. For example,
VDE allows content creators to use the same VDE foundation control arrangement for both
content authoring and for licensing content from other content creators for inclusion into their
products or for other use. Clearinghouses, distributors, content creators, and other VDE users can
all interact, both with the applications running on their VDE installations, and with each other, in
an entirely consistent manner, using and reusing (largely transparently) the same distributed tools,
mechanisms, and consistent user interfaces, regardless of the type of VDE activity."

• "VDE prevents many forms of unauthorized use of electronic information, by controlling and
auditing (and other administration of use) electronically stored and/or disseminated information."

• "VDE can further be used to enable commercially provided electronic content to be made
available to users in user defined portions, rather than constraining the user to use portions of
content that were "predetermined" by a content creator and/or other provider for billing
purposes."

• "VDE supports a "universe wide" environment for electronic content delivery, broad
dissemination, usage reporting, and usage related payment activities."

• "VDE provides important mechanisms for both enforcing commercial agreements and
enabling the protection of privacy rights. VDE can securely deliver information from one party to
another concerning the use of commercially distributed electronic content. Even if parties are

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separated by several "steps" in a chain (pathway) of handling for such content usage information,
such information is protected by VDE through encryption and/or other secure processing.
Because of that protection, the accuracy of such information is guaranteed by VDE, and the
information can be trusted by all parties to whom it is delivered."

• "VDE's security and metering secure subsystem core will be present at all physical locations
where VDE related content is (a) assigned usage related control information (rules and mediating
data), and/or (b) used. This core can perform security and auditing functions (including metering)
that operate within a "virtual black box, " a collection of distributed, very secure VDE related
hardware instances that are interconnected by secured information exchange (for example,
telecommunication) processes and distributed database means."

• "VDE supports multiple differing hierarchies of client organization control information
wherein an organization client administrator distributes control information specifying the usage
rights of departments, users, and/or projects."

• "Since VDE capabilities can be seamlessly integrated as extensions, additions, and/or
modifications to fundamental capabilities of electronic appliances and host operating systems,
VDE containers, content control information, and the VDE foundation will be able to work with
many device types and these device types will be able to consistently and efficiently interpret and
enforce VDE control information."

• "Summary of Some Important Features Provided by VDE in Accordance With the Present
Invention: VDE employs a variety of capabilities that serve as a foundation for a general purpose,
sufficiently secure distributed electronic commerce solution. VDE enables an electronic
commerce marketplace that supports divergent, competitive business partnerships, agreements,
and evolving overall business models. For example, . . . support, complete, modular separation of
the control structures related to (1) content event triggering, (2) auditing, (3) budgeting (including
specifying no right of use or unlimited right of use), (4) billing, and (5) user identity (VDE
installation, client name, department, network, and/or user, etc.). . . . Without such separation
between these basic VDE capabilities, it would be more difficult to efficiently maintain separate
metering, budgeting, identification, and/or billing activities which involve the same, differing
(including overlapping), or entirely different, portions of content fo'r metering, billing, budgeting,
and user identification, for example, paying fees associated with usage of content, performing
home banking, managing advertising services, etc. . . . VDE modular separation of these basic

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

capabilities supports the programming of plural, "arbitrary" relationships between one or differing
content portions (and/or portion units) and budgeting, auditing, and/or billing control
information."

• "A feature of VDE provided by the present invention is that certain one or more methods can
be specified as required in order for a VDE installation and/or user to be able to use certain and/or
all content."

• "A further feature of VDE provided by the present invention is that creators, distributors, and
users of content can select from among a set of predefined methods (if available) to control
container content usage and distribution functions and/or they may have the right to provide new
customized methods to control at least certain usage functions (such "new" methods may be
required to be certified for trustedness and interoperability to the VDE installation and/or for of a
group of VDE applications)."

• "Each VDE participant in a VDE pathway of content control information may set methods for
some or all of the content in a VDE container, so long as such control information does not
conflict with senior control information already in place . . . ."

• "VDE supports commercially secure "extended" value chain electronic agreements. VDE can
be configured to support the various underlying agreements between parties that comprise this
extended agreement."

• "VDE agreements support evolving ("living") electronic agreement arrangements that can be
modified by current and/or new participants through very simple to sophisticated "negotiations"
between newly proposed content control information interacting with control information already
in place

• "All participants of VDE 100 have the innate ability to participate in any role."

• "any end-user may redistribute information received to other end-users."

• "Any VDE user 1 12 may assign the right to process information or perform services on their
behalf to the extend allowed by senior control information."

• "As mentioned above, ROS 602 provides several layers of security to ensure the security of
component assemblies 690. One important security layer involves ensuring that certain

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

component assemblies 690 are formed, loaded and executed only in secure execution space such
as provided within an SPU 500."

• "An important part of VDE provided by the present invention is the core secure transaction
control arrangement, herein called an SPU (or SPUs), that typically must be present in each user's
computer, other electronic appliance, or network."

• "Moreover, when any new VDE object 300 arrives at an electronic appliance 600, the
electronic appliance must "register" the object within object registry 450 so that it can be
accessed."

• "The present inventions also provide for the use of a trusted third party electronic go-between
or intermediary in various forms, including the "virtual presence" of such go-between through the
rules and controls it contributes for distributed governance of transactions described in the present
invention, and further through the use of a distributed, go-between system operating in on-line
and/or off-line modes at various user and/or go-between sites. Such a trusted third-party go-
between can provide enhanced and automated functionality, features and other advantages such
as, for example .... These and other features and advantages provided by the present invention

• "The Virtual Distribution Environment provides comprehensive overall systems, and wide
arrays of methods, techniques, structures and arrangements, that enable secure, efficient
electronic commerce and rights management on the Internet and other information superhighways
and on internal corporate networks such as "Intranets". The present inventions use (and in some
cases, build upon and enhances) this fundamental Virtual Distribution Environment technology to
provide still additional flexibility, capabilities, features and advantages. The present invention, in
its preferred embodiment, is intended to be used in combination a broad array of the features
described in Ginter, et al, including any combination of the following:...."

• "parties using the Virtual Distribution Environment can participate in commerce and other
transactions in accordance with a persistent set of rules they electronically define."

• "The present inventions preferred embodiment make use of a digital Virtual Distribution
Environment (VDE) as a major portion of its operating foundation, providing unique, powerful
capabilities instrumental to the development of secure, distributed transaction-based electronic
commerce and digital content handling, distribution, processing, and usage management."

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

• "The Virtual Distribution Environment provides comprehensive overall systems, and wide
arrays of methods, techniques, structures and arrangements, that enable secure, efficient
electronic commerce and rights management on the Internet and other information superhighways
and on internal corporate networks such as "Intranets". The present inventions use (and in some
cases, build upon and enhances) this fundamental Virtual Distribution Environment technology to
provide still additional flexibility, capabilities, features and advantages. The present invention, in
its preferred embodiment, is intended to be used in combination a broad array of the features
described in Ginter, et al, including any combination of the following: ..."

• "The Present Invention Solve These and Other Problems

As discussed above, a wide variety of techniques are currently being used to provide secure,
trusted confidential delivery of documents and other items. Unfortunately, none of these
previously existing mechanisms provide truly trusted, virtually instantaneous delivery on a cost-
effective, convenient basis and none provide rights management and auditing through persistent,
secure, digital information protection.

In contrast, the present inventions provide the trustedness, confidentiality and security of a
personal trusted courier on a virtually instantaneous and highly cost-effective basis. They provide
techniques, systems and methods that can being to any form of electronic communications
(including, but not limited to Internet and internal company electronic mail) an extremely high
degree of trustedness, confidence and security approaching or exceeding that provided by a
trusted personal courier. They also provide a wide variety of benefits that flow from rights
management and secure chain of handling and control."

• "The present inventions make use of these persistent electronic rules to provide secure,
automated, cost-effective electronic control for electronic document and other digital item
handling and/or delivery, and for the electronic formation and negotiation of legal contracts and
other documents."

• "By way of non-exhaustive summary, these present inventions provide a highly secure and
trusted item delivery and agreement execution services providing the following features and
functions:

Trustedness and security approaching or exceeding that of a personal trusted courier. ..
Optional delayed delivery ("store and forward").
Broadcasting to multiple parties. . . .

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

Trusted validation of item contents and delivery.

Value Added Delivery and other features selectable by the sender and/or recipient.

Provides electronic transmission trusted auditing and validating.

Allows people to communicate quickly, securely, and confidentially.

Communications can later be proved through reliable evidence of the communications
transaction-providing non-repudiatable, certain, admissible proof that a particular
communications transaction occurred.

Provides non-repudiation of use and may record specific forms of use such as viewing,
editing, extracting, copying, redistributing (including to what one or more parties), and/or saving.

Supports persistent rights and rules based document workflow management at recipient

sites.

System may operate on the Internet, on internal organization and/or corporate networks
("intranets" irrespective of whether they use or offer Internet services internally), private data
networks and/or using any other form of electronic communications.

System may operate in non-networked and/or intermittently networked environments.

Legal contract execution can be performed in real time, with or without face to face or ear-
to-ear personal interactions (such as audiovisual teleconferencing, automated electronic
negotiations, or any combination of such interactions) for any number of distributed individuals
and/or organizations using any mixture of interactions.

The items delivered and/or processed may be any "object" in digital format, including, but
not limited to, objects containing or representing data types such as text, images, video, linear
motion pictures in digital format, sound recordings and other audio information, computer
software, smart agents, multimedia, and/or objects any combination of two or more data types
contained within or representing a single compound object.

Content (executables for example) delivered with proof of delivery and/or execution or other

use.

Secure electronic containers can be delivered. The containers can maintain control, audit,
receipt and other information and protection securely and persistently in association with one or
more items.

Trustedness provides non-repudiation for legal and other transactions.
Can handle and send any digital information (for example, analog or digital information
representing text, graphics, movies, animation, images, video, digital linear motion pictures,

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

sound and sound recordings, still images, software computer programs or program fragments,
executables, data, and including multiple, independent pieces of text; sound clips, software for
interpreting and presenting other elements of content, and anything else that is electronically
representable).

Provides automatic electronic mechanisms that associate transactions automatically with
other transactions.

System can automatically insert or embed a variety of visible or invisible "signatures" such
as images of handwritten signatures, seals, and electronic "fingerprints" indicating who has
"touched" (used or other interacted with in any monitorable manner) the item.

System can affix visible seals on printed items such as documents for use both in encoding
receipt and other receipt and/or usage related information and for establishing a visible presence
and impact regarding the authenticity, and ease of checking the authenticity, of the item.

Seals can indicate who originated, sent, received, previously received and redistributed,
electronically view, and/or printed and/or otherwise used the item.

Seals can encode digital signatures and validation information providing time, location, send
and/or other information and/or providing means for item authentication and integrity check.

Scanning and decoding of item seals can provide authenticity/integrity check of entire
item(s) or part of an item (e.g., based on number of words, format, layout, image-picture and/or
test-composition, etc.).

Seals can be used to automatically associate electronic control sets for use in further item
handling.

System can hide additional information within the item using "stenanography" for later
retrieval and analysis.

Steganography can be used to encode electronic fingerprints and/or other information into
an item to prevent deletion.

Multiple steganographic storage of the same fingerprint information may be employed
reflecting "more" public and "less" public modes so that a less restricted steganographic mode
(different encryption algorithm, keys, and/or embedding techniques) can be used to assist easy
recognition by an authorized party and a more private (confidential) mode may be readable by
only a few parties (or only one party) and comprise of the less restricted mode may not affect the
security of the more private mode.

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

Items such as documents can be electronically, optically scanned at the sender's end~and
printed out in original, printed form at the recipient's end.

Document handlers and processors can integrate document scanning and delivery.

Can be directly integrated into enterprise and Internet (and similar network) wide document
workflow systems and applications.

Secure, tamper-resistant electronic appliance, which may employ VDE SPUs, used to handle
items at both sender and recipient ends.

"Original 1 ' item(s) can automatically be destroyed at the sender's end and reconstituted at the
recipient's end to prevent two originals from existing simultaneously.

Secure, non-repudiable authentication of the identification of a recipient before delivery
using any number of different authentication techniques including but not limited to biometric
techniques (such as palm print scan, signature scan, voice scan, retina scan, iris scan, biometric
fingerprint and/or handprint scan, and/or face profile) and/or presentation of a secure identity
"token."

Non-repudiation provided through secure authentication used to condition events (e.g., a
signature is affixed onto a document only if the system securely authenticates the sender and her
intention to agree to its contents).

Variety of return receipt options including but not limited to a receipt indicating who opened
a document, when, where, and the disposition of the document (stored, redistributed, copied, etc.).
These receipts can later be used in legal proceedings and/or other contexts to prove item delivery,
receipt and/or knowledge.

Audit, receipt, and other information can be delivered independently from item delivery, and
become securely associated with an item within a protected processing environment.

Secure electronic controls can specify how an item is to be processed or otherwise handled
(e.g., document can't be modified, can be distributed only to specified persons, collections of
persons, organizations, can be edited only by certain persons and/or in certain manners, can only
be viewed and will be "destroyed" after a certain elapse of time or real time or after a certain
number of handlings, etc.)

Persistent secure electronic controls can continue to supervise item workflow even after it
has been received and "read."

Use of secure electronic containers to transport items provides an unprecedented degree of
security, trustedness and flexibility.

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

Secure controls can be used in conjunction with digital electronic certificates certifying as to
identity, class (age, organization membership, jurisdiction, etc.) of the sender and/or receiver
and/or user of communicated information.

Efficiently handles payment and electronic addressing arrangements through use of support
and administrative services such as a Distributed Commerce Utility as more fully described in the
copending Shear, et al. application.

Compatible with use of smart cards, including, for example, VDE enabled smart cards, for
secure personal identification and/or for payment.

Transactions may be one or more component transactions of any distributed chain of
handling and control process including Electronic Data Interchange (EDI) system, electronic
trading system, document workflow sequence, and banking and other financial communication
sequences, etc."

"All of these various coordination steps can be performed nearly simultaneously, efficiently,
rapidly and with an extremely high degree of trustedness based on the user of electronic
containers 302 and the secure communications, authentication, notarization and archiving
techniques provided in accordance with the present inventions." The asserted claims also are
invalid for violating the enablement and written description requirements to the extent that they
are construed to recite subject matter that was not enabled by the application from which they
issued, and/or not disclosed (e.g., the claims recite an element that was not disclosed in the
written description, recite an element more broadly than was disclosed by the written description,
recite subject matter for which there were no "blaze marks" in the written description pointing to
such subject matter, combine elements from different embodiments that were not so combined in
the written description, etc.) in that application. For example, at least the following bold-faced
claim language was not so enabled and/or disclosed, at least not as the claims apparently are
being "construed" by InterTrust to attempt to support its untenable infringement allegations:
'193

1) A method comprising:

a) receiving a digital file including music;

b) storing said digital file in a first secure memory of a first device;

c) storing information associated with said digital file in a secure database stored on said
first device, said information including at least one budget control and at least one copy
control, said at least one budget control including a budget specifying the number of copies

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

which can be made of said digital file; and said at least one copy control controlling the
copies made of said digital file;

d) determining whether said digital file may be copied and stored on a second device based
on at least said copy control;

e) if said copy control allows at least a portion of said digital file to be copied and stored on
a second device,

f) copying at least a portion of said digital file;

g) transferring at least a portion of said digital file to a second device including a memory and an
audio and/or video output;

h) storing said digital file in said memory of said second device; and

i) including playing said music through said audio output.

2) A method as in claim 1, further comprising:

a) at a time substantially contemporaneous with said transferring step, recording in said first
device information indicating that said transfer has occurred.

3) A method as in claim 2, in which:

a) said information indicating that said transfer has occurred includes an encumbrance on
said budget.

4) A method as in claim 3, in which:

a) said encumbrance operates to reduce the number of copies of said digital file authorized
by said budget.

1 1) A method comprising:

a) receiving a digital file;

b) storing said digital file in a first secure memory of a first device;

c) storing information associated with said digital file in a secure database stored on said
first device, said information including a first control;

d) determining whether said digital file may be copied and stored on a second device based
on said first control, said determining step including identifying said second device and
determining whether said first control allows transfer of said copied file to said second

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

device, said determination based at least in part on the features present at the device to
which said copied file is to be transferred;

e) if said first control allows at least a portion of said digital file to be copied and stored on a
second device,

f) copying at least a portion of said digital file;

g) transferring at least a portion of said digital file to a second device including a memory and an
audio and/or video output;

h) storing said digital file in said memory of said second device; and

i) rendering said digital file through said output.

15) A method comprising:

a) receiving a digital file;

b) an authentication step comprising:

c) accessing at least one identifier associated with a first device or with a user of said first device;
and

d) determining whether said identifier is associated with a device and/or user authorized to
store said digital file;

e) storing said digital file in a first secure memory of said first device, but only if said device
and/or user is so authorized, but not proceeding with said storing if said device and/or user
is not authorized;

f) storing information associated with said digital file in a secure database stored on said
first device, said information including at least one control;

g) determining whether said digital file may be copied and stored on a second device based
on said at least one control;

h) if said at least one control allows at least a portion of said digital file to be copied and
stored on a second device,

i) copying at least a portion of said digital file;

j) transferring at least a portion of said digital file to a second device including a memory and an
audio and/or video output;

k) storing said digital file in said memory of said second device; and
1) rendering said digital file through said output.

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

19) A method comprising:

a) receiving a digital file at a first device;

b) establishing communication between said first device and a clearinghouse located at a
location remote from said first device;

c) said first device obtaining authorization information including a key from said
clearinghouse;

d) said first device using said authorization information to gain access to or make at least
one use of said first digital file, including using said key to decrypt at least a portion of said
first digital file; and

e) receiving a first control from said clearinghouse at said first device;

f) storing said first digital file in a memory of said first device;

g) using said first control to determine whether said first digital file may be copied and
stored on a second device;

h) if said first control allows at least a portion of said first digital file to be copied and stored
on a second device,

i) copying at least a portion of said first digital file;

j) transferring at least a portion of said first digital file to a second device including a memory and
an audio and/or video output;

k) storing said first digital file portion in said memory of said second device; and
1) rendering said first digital file portion through said output.

'683

2. A system including:

a first apparatus including,

user controls,

a communications port,

a processor,

a memory storing:

a first secure container containing a governed item, the first secure container governed item
being at least in part encrypted; the first secure container having been received from a
second apparatus;

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6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

a first secure container rule at least in part governing an aspect of access to or use of said
first secure container governed item, the first secure container rule, the first secure
container rule having been received from a third apparatus different from said second
apparatus; and

hardware or software used for receiving and opening secure containers, said secure
containers each including the capacity to contain a governed item, a secure container rule
being associated with each of said secure containers;

a protected processing environment at least in part protecting information contained in said
protected processing environment from tampering by a user of said first apparatus, said
protected processing environment including hardware or software used for applying said
first secure container rule and a second secure container rule in combination to at least in
part govern at least one aspect of access to or use of a governed item contained in a secure
container; and

hardware or software used for transmission of secure containers to other apparatuses or for
the receipt of secure containers from other apparatuses.

28. A system including;
a first apparatus including;
user controls,
a communications port,
a processor,

a memory containing a first rule,

hardware or software used for receiving and opening secure containers, said secure
containers each including the capacity to contain a governed item, a secure container rule
being associated with each of said secure containers;

a protected processing environment at least in part protecting information contained in said
protected processing environment from tampering by a user of said first apparatus, said
protected processing environment including hardware or software used for applying said
first rule and a secure container rule in combination to at least in part govern at least one
aspect of access to or use of a governed item; and

hardware or software used for transmission of secure containers to other apparatuses or for
the receipt of secure containers from other apparatuses; and

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6,253,193 & 6,185,683 PURSUANT TO PLR3-3, 3-4

a second apparatus including:
user controls,
a communications port,
a processor,

a memory containing a second rule,

hardware or software used for receiving and opening secure containers, said secure
containers each including the capacity to contain a governed item, a secure container rule
being associated with each of said secure containers;

a protected processing environment at least in part protecting information contained in said
protected processing environment from tampering by a user of said apparatus, said
protected processing environment including hardware or software used for applying said
second rule and a secure container rule in combination to at least in part govern at least one
aspect of access to or use of a governed item;

hardware or software used for transmission of secure containers to other apparatuses or for

the receipt of secure containers from other apparatuses; and

an electronic intermediary, said intermediary including a user rights authority

clearinghouse.

29. A system as in claim 28, said user rights authority clearinghouse operatively connected to
make rights available to users.

PLR 3-4 Production

Each reference identified pursuant to PLR 3-3(a) but not in the prosecution history, and
the documents referenced in PLR 3-4 that are sufficient to show the operation of the accused
features of the products specifically identified in InterTrusf s PLR 3-1 Statements of October 29
and November 5, 2001, and "Addendum" dated March 12, 2002, has been or is being produced,
or is otherwise available for inspection and copying.

Dated: August 16, 2002

By:

WILllAM L. ANTHONY, State Bar No. 106908
ERIC L. WESENBERG, State Bar No. 139696

PAGE 86 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

Of Counsel:

T. Andrew Culbert, Esq.
One Microsoft Way
Building 8

Redmond, WA 98052-6399
Phone: 425-882-8080

HEIDI L. KEEFE, State Bar No. 178960
MARK R. WEINSTEIN, State Bar No. 193043
ORRICK HERRINGTON & SUTCLIFFE, LLP
1000 Marsh Road
MenloPark,CA 94025
Telephone: (650) 614-7400

STEVEN ALEXANDER
KRISTIN L. CLEVELAND
JAMES E. GERINGER
JOHN D. VANDENBERG
KLARQUIST SPARKMAN, LLP
One World Trade Center, Suite 1600
121 S.W. Salmon Street
Portland, OR 97204
Telephone: (503) 226-7391

Attorneys for Defendant
MICROSOFT CORPORATION

PAGE 87 - MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S. PATENTS
6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

DECLARATION OF SERVICE BY MAIL

I am more than eighteen years old and not a party to this action. My place of employment

and business address is 121 S.W. Salmon St., Portland, Oregon 97204

On August 16, 2002, 1 served:

MICROSOFT'S PRELIMINARY INVALIDITY CONTENTIONS REGARDING U.S.
PATENTS 6,253,193 & 6,185,683 PURSUANT TO PLR 3-3, 3-4

by e-mail and by placing true copies of these papers in each of separate envelopes addressed to:

Michael Page, Esq.
KEKER & VAN NEST, LLP
710 Sansome Street
San Francisco, CA 941 1 1
mhp(S)kvn.com

Steven H. Morrissett, Esq.
Finnegan Henderson Farabow

Garrett & Dunner
Stanford Research Park
700 Hansen Way
Palo AltoCA 94304-1016
steven.momssett(3)finnegan.com

Stephen E. Taylor, Esq.
Taylor &Co. Law Offices
1050 Marina Village Parkway
Suite 101

Alameda, CA 94501
stavlor(2)tcolaw.com

and sealing the envelope, affixing adequate first-class postage and depositing it in the U.S. mail at
Portland, Oregon.

I declare under penalty of perjury that the foregoing is true and correct. Executed on
August 16, 2002, at Portland, Oregon.

(SIGNATURE)

(PRINT NAME)

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and a memory

a second apparatus
operating at a particular
security level may develop
information (an object)
classified at a particular
security level, and store it at
apparatus 1

when a third apparatus seeks
access to stored object, it
must provide security level
information (e.g. a security
label)

system hardware or
software (e.g., Apparatus 1
applies BLP rules, which
determines whether the third
apparatus is granted access
or not. Permissions include
but are not limited to write,
read, copy, execute).

processing has safeguards;
see, e.g. (5) re BLP rules. It
would also be obvious to

nt

and a memory

File with any "item" "at
least in part encrypted"
received from a second
"apparatus" -e.g., a
cryptographically signed
and/or sealed or otherwise
at least partly encrypted
file received from another
computer

InterTrust*s 3-1 Statement
uses "rule" in so general a
sense that it could be any
password, key, ticket,
permission, clearance,
right, capability, or access
control used in NT (see (6)
below)

system hardware or
software

"1" and 2 nd rules" as
alleged by InterTrust could
consist of any 1 or more of

Telescript

and a memory

a first agent (object), or
associated file, encrypted in
whole or part, received from a
2d "apparatus."

a permit from a 3d apparatus
(e.g. associated with a 2d
agent meeting a 1st)

system hardware or software,
e.g. engine

processing has safeguards;
"rules" as InterTrust alleges
the term would cover permits

Chaum

and a memory

One or more enabling
credentials or "container"
thereof

applying any "rule" obtained
from a "shop 1 * or "rule'* for
exposing credit info

system hardware or software,
e.g. to process credentials

processing has safeguards;
"rules" allow electronic
commerce of varying

ATMs and other
examples in Davies &
Price

memory stores:

encrypted files, messages,
session keys and terminal
keys; ATM card or wholly
or partly encrypted
instructions or data
received from bank
computer (e.g., balance)

"rule" of any transaction,
or PIN or watermark
and/or user ID from card;
"rights portion** of data
sent from key distribution
server

system hardware or
software for opening files,
messages, deciphering
session keys; ATM
receives cards having keys
or other "governed" data;
receives data from bank
computers

second "rule" could be,
e.g., balance information,
account limits, or any otha

s

«

E
s

V

See 2(a)

so-called "secure
container** as alleged by
InterTrust would cover
Kerberos tickets which
may be received from a
server, e.g. for a read
capability.
Alternatively, any
partly encrypted file.

so-called "rule**
received from e.g.
server or end server, or
knowledge about the
authorization received
from another source;
capabilities may be
revocable and have
expiration times; access
controllists support
compound principal
identifiers

passim; possible "rules"
include for-use-by-
group, accept-once,
quota, authorized, limit-
restriction

"rules" as asserted by
InterTrust may be any
of multiple (e.g.

INTERTRUST'S
PLR3-1
STATEMENT

Consumer's computer,
as shown in WMRM
SDK

Secure container
(packaged Windows
Media file), received
by consumer's
computer from
"Content provider"
(WMRM SDK, Step
3), which contains
encrypted governed
item ("Encrypted
content")

Rights portion of
signed license,
received by
consumer's computer
from "License issuer"
(WMRM SDK, Step

Windows Media
Player and Windows
Media Rights Manager

l w and 2 nd rules consist
of any two valid rules
as specified in the
Window Media Rights

CLAIM LANGUAGE ;
(InterT rust's version)

(4) a memory storing:

(i) a first secure container ,
containing a governed
item, the first secure
container governed item
being at least in part
encrypted; the first
secure container having
been received from a
second apparatus;

i
i

(ii) a first secure I
container rule at least in
part governing an aspect
of access to or use of said
first secure container
governed item, the first
secure container rule
[sic], the first secure
container rule having
been received from a
third apparatus different
from said second
apparatus; and

(5) hardware or software
used for receiving and
opening secure containers,
said secure containers each
including the capacity to
contain a governed item, a
secure container rule being
associated with each of said
secure containers;

(6) a protected processing
environment at least in part
protecting information
contained in said protected

a.

ca

1 "8 § 2 I

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a)

Bell-La Pad ula

See 2(a)

See 2(a)(6)

See 2(a)(7)

NT

See 2(a)(5)

See 2(a)(6)

See 2(a)(7)

Telesciipt

See 2(a)(5)

See 2(a)(6)

See 2(a)(7)

Chaum

See 2(a)(5) j

See 2(a)(6)

See 2(a)(7)

ATMs and other
examples in Da vies &
Price

See 2(a)(5)

See 2(a)(6)

See 2(a)(7)

Neuman

See 2(a)(5)

See 2(a)(6)

See 2(a)(7)

INTERTRUST'S
PLR3-1
STATEMENT

first rule is a right
received as part of a
signed license
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Consumer's computer
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Media file (secure
container) via
communications port
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3) and applies secure
container rule or rules
via Windows Media
Player and Windows
Media Rights
Manager.

Processing

environment includes
Windows Media
Rights Manager and
Windows processes
for protecting
operation of Windows
Media Rights Manager

Hardware or software
employed in
transmitting Windows
Media files, including
for example
consumer's
computer's
communication port
and Windows Media
Player (WMRM SDK,
Step 3)

CLAIM LANGUAGE
(InterTrust's version)

(5) hardware or software
used for receiving and
opening secure containers,
said secure containers each
including the capacity to \
contain a governed item, a
secure container rule being
associated with each of said
secure containers;

(6) a protected processing
environment at least in part
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contained in said protected
processing environment
from tampering by a user of
said first apparatus, said
protected processing
environment including
hardware or software used
for applying said first rule
and a secure container rule
in combination to at least in
part govern at least one
aspect of access to or use of
a governed item;

(7) hardware or software
used for transmission of
secure containers to other
apparatuses or for the
receipt of secure containers
from other apparatuses; and

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One or more rights,
permissions, keys
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effect "copy
control"

if allowed,

copy is made,

and transferred to a
2d device which
includes a memory
and audio and/or
video output

where it is stored

and played

CUPID

Origination Server
governs whether files
can be transferred;
CUPID clients receive
files based on
information they
receive via their
message queues and
notification servers

if allowed

a copy is made

and transferred to a 2d
device which includes
a memory and audio
and/or video output

CUPID Client stores

and renders

HeUman

determines whether
file may be copied
to base unit or
player, or played
(e.g. to be recorded
on another device
while playing)

if allowed,

copy is made,

and transferred to a
2d device which
includes a memory
and audio and/or
video output

where it is stored

and played

CNI/IMA 94

-"write protect" status
determines whether
can copy

- rendering program
determines whether to
copy and store on an
output device, e.g. a
video display or
printer or audio device

if allowed

a copy is made

2d device includes a
memory and audio
and/or video output

"document" is
transferred

render on 2d device

Blaze

directory and/or file
keys, permissions,
rights, and/or
privileges determine
whether file may be
copied to 2 nd device

if allowed to copy

a copy is made

file is copied to a 2 nd
device including a
memory and an audio
and/or video input
(eg. a PC)

storing the file in the
2 nd device's memory

music played

"3

=

5 u
£ 3

s u

ai

es

s

e.g.,

rights/permissions/
credentials
determine whether
the file can be
copied to 2d device

if copy is allowed,

a copy is made,

and transferred to a
memory of 2d
device with a
speaker and/or video
output

file is transferred

and played

Steflk

Usage rights) (e.g. Transport-Code,
Time-Spec determine whether the file
can be copied, e.g. to rendering
repository 203 in Fig. 2. Repository
201 is coupled to a rendering device to
comprise a "rendering system" 7:66-
8:3,8:22 et seq.)

if copy is allowed,

a copy is made,

and transferred to the memory of the
rendering repository; the music file is
stored in a repository, either
ephemerally or permanently (or it
could be stored in the music-
equivalent of the "printer repository"
of 8:39-46)

file is transferred

Played, in URG sense and in sense of
being rendered (e.g. 20:41)

INTERTRUST'S PLR 3-
1 STATEMENT

Windows Media Rights
Manager enforces the license
restrictions

Windows Media Rights
Manager determines whether
the

AllowTransferToNonSDMl
or AllowTransferToSDMI
rights are present

Transfer to the SDMI or non-
SDMI portable device, if
allowed by Windows Media
Rights Manaeer

Portable device necessarily
includes at least a memory
and audio output.

Music file is transferred to the
portable device

Portable device plays the
music

CLAIM
LANGUAGE
(InterTrust's

version)

said at least one
copy control
controlling the
copies made of
said digital file:

(d) determining
whether said
digital file may be
copied and stored
on a second device
based on at least
said copy control;

(e) if said copy
control allows at
least a portion of
said digital file to
be copied and
stored on a second
device,

(1) copying at
least a portion
of said digital
file:

(2) transferring
at least a portion
of said digital
file to a second
device including
a memory and
an audio and/or
video output;

(3) storing said
digital file in
said memory of
said second
device: and

(4) including
playing said

s

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Neuman and/or
Chaum

See 1(b)

storing any of
numerous positive
or negative
credentials, rights,
or restrictions
associated with file

copy made or not
depending on a
"control"

2d device may be
identified and
transferability
determined based on
one or more of its
features

CUPID

See 1(b)

Origination Server
creates Printjob, uses
Workflow

Management Service,
records requirements,
tasks and prerequisites
needed in order to
process

Origination Server
checks copy controls
to determine whether
to transfer Printjob to
Printshop

Origination Server
initiates contact with
Notification Server
running at Printshop
and requests the PSP
(Printshop

Specification Record)
containing information
regarding the
capabilities of the
Printshop

Hellman

See 1(b)

usage rights or
access controls

copy made or not
depending on a
"control"

2d device may be
identified and
transferability
determined based on
one or more of its
features

CNI/IMA 94

storing file in memory
of a device

storing "control"
information in
memory

control may be used to
determine whether file
can be copied to 2d
device using the
rendering software

based at least in part
on features of 2d
device (e.g., does user
have "write"
privileges to 2d
device; or is the user
identification a match;
or is the 2d device able
to receive data, e.g.
using a given protocol)

Blaze

Stores in memory
managed by Unbc/CFS

Information associated
with the file is stored
in memory (e.g., a
CFS directory) by
Unix/CFS and
includes a first
"control" (e.g., a
particular permission
or right or key)

Based on the
"control," determines
whether file can be
copied to 2 nd device

2d device may be
identified and
transferability
determined based on
one or more of its
features

Choudhury,
Maxemchuck et al.

See 1(b)

rights and levels
stored in memory

copy made or not
depending on a
"control"

checking 2d device

Stefik

See 1(b)

See 1(c)

E.g., "Certain communications and
transactions may be conditioned on a
repository being in a particular
security class."

No copy is stored on 2d repository (or
the rendering hardware) if the usage
rights and/or security level
information and/or access controls
don't allow it

Usage rights, security level check
and/or access control check may fail
based on 2d device's identity

INTERTRUST'S PLR 3-
1 STATEMENT

Windows Media file is stored
in consumer's computer and
all use of it is securely
managed by the Secure
Content Manager in Windows
Media Player.

License information is stored
in the License Store (WMRM
SDK, Step 10), license
information includes Rights.
License Rights may include
AllowTransferToNonSDMI,
AllowTransferToSDMI,
LicenseCount

WMRM determines whether
transfer rights arc included in
license (WMRM SDK, Step
5)

Portable Device Service
Provider Module identifies the
portable device as either
SDMI -compliant or non-
SDMI-compliant and provides
this information to Windows
Media Device Manager,
which allows the transfer
based on whether the device
identification matches the
License Right.

CLAIM
LANGUAGE
(InterTnist's

version)

(b) storing said
digital file in a
first secure
memory of a first
device;

(c) storing
information
associated with
said digital file in
a secure database
stored on said first
device, said
i n format ion
including a first
control:

(d) determining
whether said
digital file may be
copied and stored
on a second device

based on said first
control.

(l)said
determining
step including
identifying said
second device
and determining
whether said

allows transfer
of said copied
file to said
second device,
said

determination
based at least in
part on the
features present
at the device to
which said

3

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Chaum

"identifier" accessed
according to
InterTrust

authentication
succeeds or fails

file is "processed"
only if

authentication
succeeds

See 11(c) I

CUPID

Order Name and
authorization codes for
documents

Checks login, or
authorization codes
against valid system
users via standard
Unix login measures
or through secure PKl
authentication
techniques

If authorized as a valid
document publisher,
the Origination Server
allows the files to be
stored on the
Origination Server,
see 1(a)

See 11(c) I

Hellman

or check e.g.
password or ACL or
key

authentication
succeeds or fails

file is "processed"
only if

authentication
succeeds

rights include limits |

CNI/IMA 94

"identifier" accessed
according to InterTrust

authentication
succeeds or fails

file is 'processed"
only if authentication
succeeds

attributes are stored |

Blaze

"identifier" accessed,
e.g., login or password
or signature or address
or number

authentication
succeeds or fails

"storing" occurs if
authorized

see 11(c) I

Choudhury,
Maxemchuck et al.

"identifier" accessed
according to
InterTrust

authentication
succeeds or fails

file is "processed"
only if

authentication
succeeds

license rights I

Stefik

"identifiers" can be accessed.

"A repository will have associated
with it a repository identifier.
Typically, the repository identifier
would be a unique number assigned to
the repository at the time of
manufacture. ... As a prerequisite to
operation, a repository will require
possession of an identification
certificate. Identification certificates
are encrypted to prevent forgery and
are issued by a Master repository."

- Works can be signed

- Passwords can be associated with
users or devices

- Physical security comprises known
authentication steps

authentication succeeds or fails

Digital work is stored in repository
only if authentication succeeds

associated usage right(s) or security |

INTERTRUST'S PLR 3-
1 STATEMENT

user's Windows Media Player

Music file cannot be used
unless identifier indicated in
License matches user's
Windows Media Player
identifier

Music file wilt not be
processed through Windows
Media Player, including
protected rendering buffers,
unless the identifiers match

License includes Rights and is

CLAIM
LANGUAGE
(IntcrTrust's

version)

least one
identifier
associated with
a first device or
with a user of
said first device;
and

(2) determining
whether said
identifier is
associated with
a device and/or
user authorized
to store said

Hit,

(c) storing said
digital file in a
first secure
memory of said
first device, but
only if said device
and/or user is so
authorized, but not
proceeding with
said storing if said
device and/or user
is not authorized.

(d) storing |

t

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a first "control
received

File stored

and used to
determine whether
file maybe copied
and stored on 2d
device

if copy is allowed

a copy maybe made

1 transferred 1

CUPID

Origination Server,
decrypted and
uttimately included
into final Printjob by
Document Assembly
Service

Right to reproduce
authorization is
received by
Origination Server

File stored, E.g.
Workflow

Management Service
communicates with
Document Assembly
Service that creates
printable materials by
assembling
subdocuments
referenced during
publishing step

Authorization is
checked prior to
including files in
Printjob

If Authorization is
granted then the file
can be copied

CUPID Client copies

I transfers

Hellman

a first "control"
received

File stored

and used to
determine whether
file maybe copied
and stored on 2d
device

if copy is allowed

a copy may be made

I transferred

CNI/IMA 94

a "control" comes with
the file

File stored

"control" determines
whether file can be
copied to 2d device

if the copying is
allowed

copy made

| transferred

•o

N

j»

5

Receives file
permissions or key

File stored

Uses permissions or
key to determine
whether can copy to
another device

If permission key
allows or signature
works

The file is copied

| Transferred to a 2 nd

Choudhury,
Maxemchuck et al.

one or more
"controls" received
from

"clearinghouse"

File stored

"control" determines
whether file can be
copied to 2d device

if the copying is
allowed

copy made

| transferred

Stefik

one or more "controls" is received
from "clearinghouse" repository

Digital work stored in a l w device's
memory

"control" determines whether file can
be copied to 2d device

if the copying is allowed

copying occurs

I the work is transferred

INTERTRUST'S PLR3-
1 STATEMENT

WMRM SDK, Steps 8-9.

WMRM SDK, Step 3.

At least the following
WMRMRights Object
properties meet this
limitation:

AllowTransferToNonSDMI,
AllowTransferToSDMI
Trans ferCount

This and all subsequent claim
steps occur when the
condition specified in the
WMRMRights Object
property is met

Transfer to the SDMI or non-
SDMI portable device, if
allowed by Windows Media
Riehts Manager

| Portable device necessarily

CLAIM
LANGUAGE
(InterTnist's

version)

of said first digital
file: and

(e) receiving a first
control from said
clearinghouse at
said first device;

(0 storing said
first digital file in
a memory of said
first device;

(g) using said first
control to
determine whether
said first digital
file may be copied
and stored on a

second device:

(h) if said first
control allows at
least a portion of
said first digital
file to be copied
and stored on a
second device: !

(i) copying at least
a portion of said
first digital file;

<S

00

a

|

1

3

MAY 0 7 200Z

IN THE UNITED STATES DISTRICT COlflM&RD W. WlEKING

CLEft5.U.S.ni?fRiCT COURT

FOR THE NORTHERN DISTRICT OF CAimm$3to* Cm]k

INTERTRU3T TECHNOLOGIES No, C 01-1640 SBA

CORPORATION, a Delaware corporation,

Consolidated with C 02-0647 SBA

Plaintiff, ^

ORDER GRANTING DEFENDANT

v MICROSOFT CORPORATION'S

RENEWED MOTION FOR PARTIAL

MICROSOFT CORPORATION, ^J^^lfJ^^^vro
a Washington corporation, ° F THE

GRISWOLD PATENT

[Docket NpisMO]?; & ^ ^

Defendant.

AND COUNTER ACTION. , . £}M pcfibS HI lliis flCtoflS-

/

21 1

In vi.w of plaintiff s statement of non-opposition to defendant's Renewed Motion for Partial
Summary Judgment of Noninfringement of the Criswold Patent,

IT IS HEREBY ORDERED THAT defendant's Renewed Motion for Partial Summary
Judgment of Noninfringement of the Griswold Patent is GRANTED.

IT IS FURTHER ORDERED THAT the Case Management Conference scheduled for May
7, 2002 is CONTINUED to M av 23 - 2002 flt 3:00 p - m ' Plaintiffs counsel is to set up the
telephonic conference call with all the parties on the line and call chambers at (5 10) 637-3559 at the
time designated above. NO PARTY SHALL CONTACT CHAMBERS DIRECTLY WITHOUT
PRIOR AUTHORIZATION OF THE COURT. Since the parties filed a Joint Case Management
Statement on April 26, 2002, the parties need not file a new Statement unless changed circumstances
warrant the illing of an updated statement Any updated statement shall be filed at least five (5)
days in advance of the new CMC date.

IT IS SO ORDERED.

Dated- May 3 2002 SAUNDRA BROWN ARMSTRONG^

Dated. May i, ^ Judgc

PATENT
Customer Number 22,852
Attorney Docket No. 0745 1 .0001 . 1 0
InterTrust Ref. No. : IT-5.0.2

IN THE UNITED STATES PATENT AND TRADEMARK OFFICE

In re Application of:

Karl L. GINTER et al.

Serial No.: 09/328,668

Filed: June 9, 1999

For: SYSTEMS AND METHODS FOR
SECURE TRANSACTION
MANAGEMENT AND
ELECTRONIC RIGHTS
PROTECTION

Assistant Commissioner for Patents
Washington, DC 20231

Sir:

NOTICE REGARDING RELATED LITIGATION

Applicants hereby notify the U.S. Patent and Trademark Office that several patents
assigned to InterTrust Technologies Corporation ("InterTrust") are involved in litigation. The
present application, Serial No. 09/328,668, is a continuation of U.S. Patent No. 5,982,891, which
is one of the patents at issue in the litigation, and shares a common parent with U.S. Patent Nos.
6,389,402 Bl; 6,253,193 Bl; 6,185,683 Bl; 5,949,876; 5,917,912; 5,915,019; and 5,892,900,
which are also at issue in the litigation.

STATUS OF RELATED LITIGATION

The status of the litigation is as follows. On April 26, 2001, InterTrust filed a Complaint
alleging that Microsoft Corporation ("Microsoft") was infringing U.S. Patent No. 6,185,683 Bl,

Group Art Unit: 2132
Examiner: G. Barron, Jr.

1

2
3
4
5
6
7
8
9

io
n

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

DECLARATION OF SERVICE VIA ELECTRONIC MAIL AND U.S. MAIL

I am more than eighteen years old and not a party to this action. My place of

employment and business address is 1000 Marsh Road, Menlo Park, California 94025.

On May 14, 2002, 1 served:

ORDER GRANTING DEFENDANT MICROSOFT CORPORATION'S RENEWED
MOTION FOR PARTIAL SUMMARY JUDGMENT OF NONINFRINGEMENT OF THE
GRISWOLD PATENT

By transmitting a copy of the above-listed document(s) in PDF form via electronic mail Michael
H. Page at mhp@kvn.com, Christopher P. Isaac at chris.isaac@finnegan.com, Stephen E.
Taylor at staylor@tcolaw.com and James E. Geringer atjames.geringer@klarquist.com and

also by placing true and correct copies of the above documents in an envelope addressed to:

John W. Keker, Esq.
Michael H. Page, Esq.
KEKER & VAN NEST, LLP
710 Sansome Street
San Francisco, California 941 1 1
Tel. No. 415-391-5400
Fax No. 415-397-7188
Email: jwk@kvn.com
Email: mhp@kvn.com

Attorneys for Plaintiff INTERTRUST
TECHNOLOGIES CORPORATION

Stephen E. Taylor, Esq.

TAYLOR & CO. LAW OFFICES

1050 Marina Village Parkway, Suite 101

Alameda, CA 94501

Tel. No. 510-865-9401

Fax No. 510-865-9408

Email: staylor@tcolaw.com

Attorneys for Plaintiff
INTERTRUST TECHNOLOGIES
CORPORATION

Christopher P. Isaac, Esq.

FINNEGAN, HENDERSON, FARABOW,

GARRETT & DUNNER LLP

13001. Street, N.W.

Washington, DC 20005-3314

Tel. No. 202-408-4000

Fax No. 202-408-4400

Email: chris.isaac@finnegan.com

Attorneys for Plaintiff
INTERTRUST TECHNOLOGIES
CORPORATION

John D. Vandenberg, Esq.

James E. Geringer, Esq.

KLARQUIST, SPARKMAN, LLP

One World Trade Center

121 S. W. Salmon Street, Suite 1600

Portland, Oregon 97204

Tel. No: 503-226-7391

Fax No: 503-228-9446

Email: john.vandenberg@klarquist.com

Email: j ames.geringer@klarquist.com

Attorneys for Defendant and Counterclaimant,
MICROSOFT CORPORATION

and sealing the envelope, affixing adequate first-class postage and depositing it in the U.S. mail
at Menlo Park, California.

Executed on May 14, 2002 at Menlo Park, California.

I declare under penalty of perjury that the foregoing is true and correct.

ANNA FREDDIE

nnr<:<;vi i RQ70Q 1 DECLARATION OF SERVICE VIA ELECTRONIC MAIL

DULbbV l l vujj. i AND v s MAIL _ CASE NO c OM640 SBA (MEJ) );

CONSOLIDATED WITH C 02-0647 SBA